On 15 December 2019 Castellers Group wishes to lock in the interest rate on a prospective borrowing of $2 500 000 for a three-month period from 15 March 2020 to 15 June of the same year. An FRA dealer quotes 12.15% per annum. On 15 March the BBSW reference rate is 12.75% per annum. 

What is the settlement amount?

Answer rating: 100% (QA)

To calculate the settlement amount for the Forward Rate Agreement FRA we need to dete... View the full answer