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A "three against nine" FRA has an agreement rate of 5.25%. You believe that six-month LIBOR will be 5.6% in three months. You decided to speculate using a FRA with a $5,000,000 notional amount. Determine whether you should buy or sell the FRA and also compute your 'expected' dollar profit

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91608071

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