Question: Question 10 6 pts a) Explain the main advantages and disadvantages of FRA contracts for FRA users. (2 marks) b) Demonstrate how a fund manager

Question 10 6 pts a) Explain the main advantages and disadvantages of FRA contracts for FRA users. (2 marks) b) Demonstrate how a fund manager can hedge a planned investment in 550 million (face value) parcel of 90-day NCDs next month with a 1:4 FRA at 4.2% assuming the spot rate next month is 3.95%. (4 marks) Edit View Insert Format Tools Table I U Ave ? ? 12ptv Paragraph

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