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    Forward Rate: Futures and Options

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    Here is the question. The actual data is attached.

    What is the value of an FRA that promises to pay you 5.0% (compounded semi-annually) on a principal of $1 million for the six-month period starting in 18 months?

    © BrainMass Inc. brainmass.com October 10, 2019, 12:02 am ad1c9bdddf
    https://brainmass.com/economics/finance/forward-rate-futures-options-276361

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    Solution Summary

    Forward Rate is assessed.

    $2.19