IN WHAT WAY IS THE PAYOFF OF A FORWARD RATE AGREEMENT MOST LIKELY...

49. - MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014
MOCK AND SAMPLE EXAMS CFA LEVEL I MOCK EXAM AFTERNOON VERSIONB QUESTIONS 2014

49. In what way is the payoff of a forward rate agreement most likely different from the payoff of an

interest rate option? It is:

A. paid immediately when the contract expires.

B. based on a notional principal amount.

C. based on a fixed exercise rate.