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

question 2

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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