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The discount rate used to calculate the cash settlement at time T1 in a forward rate agreement (FRA) is ________. A. Rm , actual LIBOR
The discount rate used to calculate the cash settlement at time T1 in a forward rate agreement (FRA) is ________.
A. | Rm, actual LIBOR interest rate observed in the market at time T1 for the period T1-T2 | |
B. | The current LIBOR rate | |
C. | RK, rate of interest agreed to in the FRA | |
D. | The Treasury bill rate |
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