Assume the Following Terms for an FRA: Reference Rate Is

question 35

Multiple Choice

Assume the following terms for an FRA: Reference rate is three-month LIBOR, the contract rate is 4.5%, the notional amount is for $10 million, and the number of days to settlement is 91 days. If the settlement rate is 5.15%, what compensation or payment must make to the buyer by the seller?

• A) $16,431
• B) $16,219
• C) $16,003
• D) $15,874

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Definitions:

Collectivist Perspective

An approach in psychology that focuses on the importance of cultural, social, and familial interdependence, emphasizing the community over individual achievement.

Psychopharmacology

The study of the use of medications in treating mental disorders, focusing on how drugs affect the mind and behavior.

Individualism

A cultural value or social outlook that emphasizes the importance of personal independence and self-reliance over group cohesion.

Paraprofessionals

Trained aides who assist professionals, particularly in educational, legal, and health care settings, but do not have the full professional qualifications.