When you are short a position in a FRA, you are effectively
A) Long the three-month zero-coupon bond, and long the six-month zero-coupon bond.
B) Long the three-month zero-coupon bond, and short the six-month zero-coupon bond.
C) Short the three-month zero-coupon bond, and long the six-month zero-coupon bond.
D) Short the three-month zero-coupon bond, and short the six-month zero-coupon bond.
Correct Answer:
Verified
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