Suppose that a bank enters into an FRA that is designed to ensure it will receive a
Fantastic news! We've Found the answer you've been seeking!
Question:
Suppose that a bank enters into an FRA that is designed to ensure it will receive a fixed rate of on a principal of $ million for a month period starting in years. The FRA is an exchange where SOFR is paid and is received for the month period. If month SOFR proves to be for the month period, how large will the cash flow to the lender be When is it received?
Posted Date: