Suppose you are long a 90-day LIBOR-based FRA (receive floating) with notional amount of $50,000,000. At expiration,

Question:

Suppose you are long a 90-day LIBOR-based FRA (receive floating) with notional amount of $50,000,000. At expiration, LIBOR is 4 percent and the strike rate (the agreed-upon rate) is 3 percent. Assuming a 360-day year, what is the dollar profit or loss on this FRA? How would your answer change if you were short (receive fixed)?