Which of the following statements regarding forward rate agreements (FRAs) is false:
A) FRAs are settled by the payment of the difference in interest payable on a notional principal at the agreed rate and at the current market rate.
B) if the market has risen,the buyer must pay the seller of the FRA.
C) FRAs are signed on the trade date.
D) none of the above.
Correct Answer:
Verified
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