Question: You enter in a long position in a 6 x 1 2 FRA at a LIBOR rate of 3 . 0 0 % and a

You enter in a long position in a 6x12 FRA at a LIBOR rate of 3.00% and a nominal value of $10M.
(a) When does this FRA expire in months?
(b) Suppose, at maturity, the 6-month LIBOR rate is 3.5%. What is your payoff on that FRA? Note you should calculate this value at the maturity of the FRA, which is month 6.

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