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Suppose that a party wanted to enter an FRA that expires in 121 days and is based on 57-day LIBOR. The dealer quotes a rate

Suppose that a party wanted to enter an FRA that expires in 121 days and is based on 57-day LIBOR. The dealer quotes a rate of 0.03 on the FRA. Assume that at expiration, the 57-day LIBOR is 0.062, and the notional amount is USD10,000,000. What is the payoff of the FRA short position?

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