Question: Please Help (FRA)A bank is considering using a three against six ( $ 2,000,000 ) FRA to cover its potential loss. The purpose of the

Please Help

$Please Help (FRA)A bank is considering using a \"three against six\" \\($

(FRA)A bank is considering using a \"three against six\" \$ \\$ 2,000,000 \$ FRA to cover its potential loss. The purpose of the FRA is to cover the interest rate risk caused by the maturity mismatch from having made a six-month Eurodollar loan and having accepted a threemonth Eurodollar deposit. The agreement rate with the buyer is \4.682. There are actually 92 days in the three-month FRA period. If the settlement rate is \6.518 three months from today, then the FRA is worth s (Keep two decimal places.)

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