A Long Position in A $6 \times 9$ FRA Can Be Replicated Using
A) a Six-Month Borrowing Combined

question 25

Multiple Choice

A long position in a $6 \times 9$ FRA can be replicated using

• A) A six-month borrowing combined with a 9-month investment.
• B) A six-month investment combined with a 9-month borrowing.
• C) A six-month investment combined with a 3-month borrowing.
• D) A six-month borrowing combined with a 3-month investment.

---

Definitions:

Ease of Formation

Refers to the simplicity and low barriers to legally establishing and starting a new business entity.

Governmental Regulations

Rules established by government bodies intended to control and govern the conduct of businesses and individuals to ensure compliance with policies and standards.

Partnership Assets

Partnership assets include all the resources owned by a partnership, ranging from cash, property, and equipment to intangible assets, used in the operation of the partnership.

Capital Contributions

Funds or assets provided by owners or shareholders to a company for the purpose of growing the business or covering operational expenses.