A company is planning on setting up a new financing arrangement where $100 million will be borrowed in order to finance a major expansion into a foreign market. The CFO is concerned that there may be an interest rate decline within the next two months. There is significant concern among the executives of the company that any delay would seriously hamper the company’s chances of gaining a foothold in the new market and feel that it is vital to proceed without delay. The CFO obtains the following quotes from a dealer for an FRA:()
A.Dealer
B.Quotes
C.60-Day
D.LIBOR=0.0450
E.90-Day
F.LIBOR=0.0440
G.180-Day
H.LIBOR=0.1420