When You Are Short a Position in A $3 \times 6$

question 15

Multiple Choice

When you are short a position in a $3 \times 6$ FRA,you are effectively

• A)Long the three-month zero-coupon bond,and long the six-month zero-coupon bond.
• B)Long the three-month zero-coupon bond,and short the six-month zero-coupon bond.
• C)Short the three-month zero-coupon bond,and long the six-month zero-coupon bond.
• D)Short the three-month zero-coupon bond,and short the six-month zero-coupon bond.

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Definitions:

Japanese Producers

Companies or individuals in Japan involved in the manufacturing or creation of goods.

Short Run

The time period in which at least one input is fixed.

U.S. Imports

Products and services purchased by United States residents from foreign nations.

Japanese Producers

Japanese producers refer to businesses or individuals based in Japan engaged in the production of goods or services, known for their innovation and quality across various industries.