Suppose you are long a 90-day libor-based fra with notional, Ask an Expert

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Suppose you are long a 90-day LIBOR-based FRA with notional amount of $50 million. At expiration, LIBOR is 4% and the strike rate (the agreed-upon rate) is 3%. Assuming a 360-day year, what is the dollar profit or loss on this FRA? How would your answer change if you were short?

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