Today is Monday, 8th December. You sell a 9x12 FRA for value Thursday, 10th September next year. On what date is the settlement amount due to be paid or received (assuming that there are no holidays)?
A) 8th September next year
B) 10th September next year
C) 8th December next year
D) 10th December next year

Question

Quizplus · Accepted Answer

The settlement date for a FRA is calculated as the value date plus the number of days specified in the FRA contract. In this case, the value date is Thursday, 10th September next year, and the FRA is for a period of 90 days. Therefore, the settlement date will be 90 days after the value date, which is on Thursday, 10th December next year. So the correct answer is B.

Today Is Monday, 8th December