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You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 6 months. You observe

You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 6 months. You observe the following rates:

3 months ( 90 days) rate: 3%

6 months (180 days) rate: 4%

9 months (270 days) rate: 5%

What rate should you quote?

A. 2.48%
B. 5.96%
C. 6.86%
D. 4.96%

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