Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the funds. BNP-Paribas, a French bank, offers a FRA with an interest rate of 6% to cover the extra funds for the 3-month period that begins 3 months from today. Your company decides to take the FRA offer from BNP-Paribas.

In the above case, your company would be the ________ of the FRA and BNP-Paribas would be the _________ of the FRA. If interest rates 3 months from now are at 6.1%, the value of the FRA amount to be transferred will be USD _____ and your company will _______this difference to bring your return Answer the agreement rate of 6%. If interest rates 3 months from now are at 5.2%, the value of the FRA amount to be transferred will be USD ________ and your company will ________ this difference to bring your return ________ the agreement rate of 6%.. If interest rates 3 months from now are at 6.0%, the value of the FRA amount to be transferred will be USD _________ and your company will _______ this difference to bring your return ________ the agreement rate of 6%.