XMN is a multinational company. The company Intend to borrow $50 mil in 3 month for 6 month. The company is considering to enter to FRA. The economy is doing very well Three month later the settlement rate Become 2.5%

Borrowing.	Deposit
3 month 0.75	0.7
6 month 0.85	0.8
9 month 0.95	0.9
12 month. 1.05	1

A. According to the economy do you think the rate is likely to increase or decrease?

B. Do you think XMN make the right choice?

C. According to FRA agreement, how much would be the gain or the loss for the company