You Bought a CAD 8,000,000

question 506

Multiple Choice

You bought a CAD 8,000,000.00 6x9 FRA at 1.95%. The settlement rate is 3-month (90-day) BBA LIBOR, which is fixed at 0.9500%. What is the settlement amount at maturity?

• A) You pay CAD 20,000.00
• B) You receive CAD 20,000.00
• C) You pay CAD 19,952.61
• D) You receive CAD 19,952.61

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Definitions:

Self-Regulation

The ability to manage and control one's own emotions, thoughts, and behaviors in accordance with situational demands.

Negativism

denotes a pervasive pattern of negative attitudes, feelings of helplessness and pessimism, or a general opposition to suggestions or advice.

Interactional Synchrony

Describes the coordinated and rhythmic interaction between caregiver and child, facilitating bonding and communication.

Willful

Describing actions or behaviors done intentionally or with a strong determination.