The Reserve Bank has signalled interest rates will rise. The company has bought a $20m 3/9 FRA at 7% pa to hedge its debt exposure. In 3 months, the 6-month BBSW is 8% pa so:

Select one:

A.

the company will receive an amount on maturity date

B.

the company will pay the amount due on settlement date

C.

the company will pay the amount due on maturity date

D.

the company will receive an amount on settlement date