If a FRA Covers Six-Month Interest Rates but Will Begin

question 10

Multiple Choice

If a FRA covers six-month interest rates but will begin its cover in three months it will be written:

• A) 6Mv9M.
• B) 3Mv9M.
• C) 3Mv6M.
• D) 6Mv3M.

---

Definitions:

Fallacy

A fault in logical judgment that causes an argument to be invalid or not based on sound reasoning.

Denying Antecedent

A logical fallacy involving the incorrect assumption that the falsehood of a premise invalidates the conclusion, particularly in conditional reasoning.

Hypothetical Syllogism

A logical argument involving two conditional statements and a conclusion that logically follows from them.

Formalize

The act of expressing an idea, argument, or process in a precise, often mathematical or logical, form.