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What is the dollar profit or loss on fra

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Suppose you are long a 180-day LIBOR-based FRA (receive floating) with notional amount of $50,000,000. At expiration, LIBOR is 3 percent and the strike rate (the agreed-upon rate) is 4 percent. Assuming a 360-day year, what is the dollar profit or loss on this FRA? How would your answer change if you were short (receive fixed)?

Reference no: EM132584866

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