3(c) Consider the following fixed-for-float forward rate agrement thatis expires/settles in 30 days:...
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c Consider the following fixedforfloat forward rate agrement thatis expiressettles in days: is based on a notional prineple amount of $ million, is based on diay LIBOR. specifies a forward rate of Assume that the actual day LIBOR days from expiration is Compute the cash settlement payment at expiration and hence find the value of this forward rate agreement. Also, Identify whether the long or short party position makes the payment. 
c Consider the following fixedforfloat forward rate agrement thatis
expiressettles in days:
is based on a notional prineple amount of $ million,
is based on diay LIBOR.
specifies a forward rate of
Assume that the actual day LIBOR days from expiration is Compute the cash
settlement payment at expiration and hence find the value of this forward rate agreement.
Also, Identify whether the long or short party position makes the payment.
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