Business, 25.02.2020 18:00 honeyaranda326pay2bl

Suppose that a party wanted to enter into an FRA that expires in 42 days and is based on 1 LIBOR. The dealer quotes a rate of 4.75% on this FRA. Assume that at expiration, the 137-day LIBOR is 4% and the notional principal is $20,000,000 2. 137-day

a. What is the term used to describe such non-standard instruments?
b. Calculate the FRA payoff on a long position

Answers: 2

Show answers

Other questions on the subject: Business

Business, 22.06.2019 11:00, pum9roseslump

While on vacation in las vegas jennifer, who is from utah, wins a progressive jackpot playing cards worth $15,875 at the casino royale. what implication does she encounter when she goes to collect her prize?

Answers: 1

continue

Business, 22.06.2019 11:00, idontknow1993

Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economía

Answers: 2

continue

Business, 22.06.2019 15:30, Pooh1189

Uknow what i love about i ask a dumb question it is immediately answered but when i ask a real question it take like an hour to get answered

Answers: 2

continue

Business, 22.06.2019 18:50, gucc4836

Retirement investment advisors, inc., has just offered you an annual interest rate of 4.4 percent until you retire in 40 years. you believe that interest rates will increase over the next year and you would be offered 5 percent per year one year from today. if you plan to deposit $13,000 into the account either this year or next year, how much more will you have when you retire if you wait one year to make your deposit?

Answers: 3

continue

You know the right answer?

Suppose that a party wanted to enter into an FRA that expires in 42 days and is based on 1 LIBOR. Th...