On the Settlement Date for a Forward Rate Agreement (FRA)

question 134

True/False

On the settlement date for a forward rate agreement (FRA) contract, the difference between the two interest rates is multiplied by the FRA's par value and prorated by the length of the holding period.

---

Definitions:

Sexual Maturation

The process of acquiring sexual maturity and reaching reproductive capability.

Puberty

The developmental stage in humans and other primates marked by the onset of sexual maturity and physical growth.

Reproducing

The biological process or action of producing offspring or new individuals of the same kind.

Authoritative Parents

Characterized by a parenting style that is supportive and nurturing yet sets clear and firm limits; believed to foster independent and well-adjusted children.