On the settlement date of a forward rate agreement fra the, Ask an Expert

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On the settlement date of a forward rate agreement (FRA), the party that holds the short position in the FRA will most likely:

A receive a payment if the applicable LIBOR rate is above the rate specified in the FRA.

B receive a payment if the applicable LIBOR rate is below the rate specified in the FRA.

C lend money to the party that holds the long position at the rate specified in the FRA.

D borrow money from the party that holds the long position at the rate specified in the FRA.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92428212

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