In a 12 x 18 FRA,the derivative expires in one year and the underlying matures in 18 months.

Name: In a 12 x 18 FRA,the derivative expires in one year and the underlying matures in 18 months.
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In a 12 x 18 Forward Rate Agreement (FRA), the first number (12) indicates the time until the contract expires, which is 12 months or one year, and the second number (18) indicates the time until the underlying loan or deposit matures, which is 18 months from the start date.

In a 12 X 18 FRA,the Derivative Expires in One