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Postby chandniwadhwani92 » Tue Oct 14, 2014 6:30 pm

In forward rate agreement at T1 when buyer asked for loan 3 months from now for 6 months at 5,5%
At ti libor is 5%
but at t3 libor increases to 6%
In this case how to calculate profit for long position at T9 when at T9 libor is 4%

At T3 libor is 6%
But at T9 it reduce to 4%
But agreement is of 5.5

While calcualating we need to consider T9 rate or T3 when loan amount is exchanged

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Postby edupristine » Fri Oct 17, 2014 7:21 am

This question has been repeated. It has already been answered in a previous post. Please kindly check.

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