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

You are a bank and your customer asks you to quote an agreed-upon rate for a 6-month FRA that starts in 3 months. You observe the following rates: 3 months ( 90 days) rate: 2%; 6 months (180 days) rate: 3%; 9 months (270 days) rate: 4%. What rate should you quote?

A. 4.98%

B. 3.98%

C. 5.98%

D. 2.98%

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