An FRA Is Similar to Any Type of Forward Contract,but

question 48

True/False

An FRA is similar to any type of forward contract,but the payoff is based on an interest rate,rather than the price of an asset.

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Definitions:

Test Statistic

A value derived from sample data used in hypothesis testing to determine whether to reject the null hypothesis.

Null Hypothesis

A statistical hypothesis that assumes no significant difference or effect exists between specified populations or parameters.

Alternative Hypothesis

A hypothesis that contradicts the null hypothesis by stating there is a statistically significant effect or relationship between variables.

Null Hypothesis

A default hypothesis that there is no significant difference or effect, used as a starting point for statistical hypothesis testing.