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Which of the following is TRUE about a forward rate agreement (FRA)? a) It is an exchange-traded instrument b) It can be cash or physically

Which of the following is TRUE about a forward rate agreement (FRA)?

a) It is an exchange-traded instrument

b) It can be cash or physically settled

c) A borrower who intends to borrow cash at LIBOR in the future will hedge by receiving the fixed interest rate, R(k), in an FRA

d) A bank that intends to lend cash at LIBOR in the future will hedge by receiving the fixed interest rate, R(k), in an FRA

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