QUESTIONS 91 THROUGH 96 RELATE TO DERIVATIVE INVESTMENTS.

91. Kamran Arshad Satti took a long position in a 3X7 FRA at 4.6%. At the end of contract expiry, the 90-days and 120-days rates are 4.5% and 4.8%. What is the payoff of this FRA at the end of contract? Assume the notional principal to be $100,000. A. -$24.70 B. $65.62 C. $65.66