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An investment manager wants to hedge $25,000,000 against a possible adverse change in Interest rates. She therefore plans to take a short position on an FRA that explres in 60 days, based on a 150-day Euribor. The current term structure for Euribor is as follows: a. The FRA that the investment manager has most likely committed to is a? b. What is the price of an FRA expiring in 30 days based on the 150-day Euribor? Round your answer to two decimale. Suppose that 6 days into the term of the FRA, 24-day Euribor is 6.99\% and 174-day Euribo is 6.8%. Given a notional principal of $25,000,000 and the short position on the FRA: c. What is the annualized rate applicable on a 150 -day loan 20 days from today? Pround your answer to twa decimatis. d. What is the value of the FRA? Round youf anstwer to the dollill An investment manager wants to hedge $25,000,000 against a possible adverse change in Interest rates. She therefore plans to take a short position on an FRA that explres in 60 days, based on a 150-day Euribor. The current term structure for Euribor is as follows: a. The FRA that the investment manager has most likely committed to is a? b. What is the price of an FRA expiring in 30 days based on the 150-day Euribor? Round your answer to two decimale. Suppose that 6 days into the term of the FRA, 24-day Euribor is 6.99\% and 174-day Euribo is 6.8%. Given a notional principal of $25,000,000 and the short position on the FRA: c. What is the annualized rate applicable on a 150 -day loan 20 days from today? Pround your answer to twa decimatis. d. What is the value of the FRA? Round youf anstwer to the dollill

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