Question: Assume that you have already bought a 90-day LIBOR-based floating rate note (FRA) with notional amount of $50m. With the strike rate (the agreed-upon rate)

Assume that you have already bought a 90-day LIBOR-based floating rate note (FRA) with notional amount of $50m. With the strike rate (the agreed-upon rate) of 3%, and assuming you receive the float payments, and the LIBOR at expiration is 4%

(1) how much you would pay (receive) to (from) the FRA seller?

(2) If LIBOR at expiration is 2.5%, how much you would receive from the FRA seller?

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