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Your company will receive USD10,000,000 in 3 months' time and will keep the funds for a 3-month period to cover a payable 6 months from today. Your analysts think that interest rates may fall from their current level at 6.1% and you want to protect the return you will get until you need the funds. BNP-Paribas, a French bank, offers a FRA with an interest rate of 6% to cover the extra funds for the 3-month period that begins 3 months from today. Your company decides to take the FRA offer from BNP-Paribas. In the above case, your company would be the + of the FRA and BNP-Paribas would be the of the FRA If interest rates 3 months from now are at 6.1%, the value of the FRA amount to be transferred will be USD and your company will this difference to bring your return the agreement rate of 6%. If interest rates 3 months from now are at 5.2%, the value of the FRA amount to be transferred will be USD and your company will this difference to bring your return the agreement rate of 6%.. If interest rates 3 months from now are at 6.0%, the value of the FRA amount to be transferred will be USD and your company will this difference to bring your return the agreement rate of 6%

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