On December 5^th 2011, Alison was advised by her bank that her application for a bill acceptance facility that would allow her to issue 120-day bank bills with a total face value of $850,000 in June 2012, was successful. These will be sold to yield BBSW+0.5% p.a.  Concerned that interest rates may rise before the bills are issued on June 5^th, Alison assembled the following FRA quotations payable against the reference rate of BBSW.

                                               FRA                         Lender                                   Borrower

                                                  6/9                          5.5% p.a.         6.5% p.a.

                                                 6/10                         5.6% p.a.         6.6% p.a.

                                                 9/12                         5.9% p.a.         6.9% p.a.

                                                10/13                        6.0% p.a.         7.0% p.a.

How Alison should use an FRA to hedge her exposure, and calculate the amount, direction, and date of the payment at settlement if, on the settlement date BBSW is 5.1% p.a.