You entered in to a 3 6 forward rate agreement that obliged you to borrow $10,000,000 at 3%. Suppose at the maturity of the FRA, the correct interest rate is 3%. Clearly you are better off since you have the ability to borrow $10,000,000 for 3 months at 3% instead of 3%. What is the payoff at the maturity of the FRA?

A - Net payment of $12,391.57 to you

B - Net payment of $12,500 to you

C - Net payment of $50,000 to you

D - Net payment of $48,309.18 to you

Circle the correct answer above and provide the workings to the answer below here: