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What rate should you quote

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Reference no: EM132747128

Question - You are a bank and your customer asks you to quote an agreed-upon rate for a 3-month FRA that starts in 3 months. You observe the following rates:

3 months (90 days) rate: 3%;

6 months (180 days) rate: 4%;

9 months (270 days) rate: 5%.

Required - What rate should you quote?

A. 5.96%

B. 4.96%

C. 2.99%

D. None of the above

Reference no: EM132747128

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