Traditional notional grammar is a bottom－up approach,（)

A.content

B.notional

C.empty

D.new

A.Counterparty risk

B.Operational risk

C.Market risk

D.Notional risk

A.A. situational

B.B. functional

C.C. structural

D.D. notional

A.Either answer is correct.

B.Ten miles is a long walk to an old man.

C.No one except my friends nod to m

D.Several boys are standing on the comer.

A、fabulous

B、notorious

C、furious

D、notional

A.notional

B.curiosity

C.novel

D.negotiate

Banger and Mash is a traditional American dish.()

Monica Lewis, CFA, has been hired to review data on a series of forward contracts for a major client. The client has asked for an analysis of a contract with each of the following characteristics:

A forward contract on a U.S. Treasury bond

A forward rate agreement (FRA)

A forward contract on a currency

Information related to a forward contract on a U.S. Treasury bond: The Treasury bond carries a 6 percent coupon and has a current spot price of $1,071.77 (including accrued interest). A coupon has just been paid and the next coupon is expected in 183 days. The annual risk-free rate is 5 percent. The forward contract will mature in 195 days.

Information related to a forward rate agreement: The relevant contract is a 3 x 9 FRA. The current annualized 90-day money market rate is 3.5 percent and the 270-day rate is 4.5 percent. Based on the best available forecast, the 180-day rate at the expiration of the contract is expected to be 4.2 percent.

Information related to a forward contract on a currency: The risk-free rate in the U.S. is 5 percent and 4 percent in Switzerland. The current spot exchange rate is $0.8611 per Swiss France (SFr). The forward contract will mature in 200 days.

Part 5)

Based on the information given and assuming a notional principal of $10 million, what value should Lewis place on the 3 x 9 FRA at time of settlement？

A)$38,000 paid from short to long.

B)$19,000 paid from long to short.

C)$37,218 paid from long to short.

D)$19,000 paid from short to long.