The exercise price (strike price) of an option contract is:
A forward rate agreement (FRA) is:
You bought a 6x9 EUR 8,000,000.00 FRA at 4.50%. Settlement is now due and 3 months (90 days) EURIBOR is 3.50%. What amount do you pay or receive?
Today is Monday, 8 December. You sell a 9x12 FRA in EUR. When will the settlement amount be paid or received, assuming that there are no bank holidays?
Your dealer bought a 6x9 USD 4,000,000.00 FRA at 6.75%. Settlement is now due and 3 months (90 days) USD LIBOR is 5.50%. What amount do you pay or receive?