Question: Explain the difference between: a notional 3X6 FRA 95 million pounds where the fixed rate of 1.2% is received and a long floorlet maturing in

Explain the difference between: a notional 3X6 FRA 95 million pounds where the fixed rate of 1.2% is received and a long floorlet maturing in 3 months, the underlying is a 6-month libor rate in pounds, the fixed rate is 1.2% and the premium is 200 thousand pounds.

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