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  3. a bank enters a 3x6 fra as a borrower at 4%. which

A bank enters a 3x6 FRA as a borrower at 4%. Which of the following...

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Finance

A bank enters a 3x6 FRA as a borrower at 4%. Which of the following rate changes in three months will produce a profit from the FRA?

  1. 3-month LIBOR rising
  2. 3-month LIBOR declining
  3. 6-month LIBOR rising
  4. 6-month LIBOR declining
  5. 9-month LIBOR rising
  6. 9-month LIBOR declining

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