What will be the payout for the user if the dealer goes short and the user goes long in a transaction where the notion. Consider a FRA expiring in 90 days for which the underlying is a 180 day LIBOR. What will be the payout for the user if the dealer goes short and the user goes long in a transaction where the notion amount is $10 million given that a 6% interest rate will be paid to the 180 day LIBOR at expiration? Suppose the dealer bought the instrument at a rate of 5.5%.
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What will be the payout for the user if the dealer goes short and the user goes long in a transaction where the notion
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