Question: Explain the difference between the following terms: (a) Payoff to an FRA. (b) Price of an FRA. (c) Value of an FRA

Explain the difference between the following terms: 

(a) Payoff to an FRA. 

(b) Price of an FRA. 

(c) Value of an FRA

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a The payoff from an FRA is the dollar amount received at maturity of the FRA For example if we a... View full answer

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