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How can a bank create a synthetic 60-day forward rate agreement on a 180-day interest rate?

A  Borrow for 180 days and lend the proceeds for 60 days.

B  Borrow for 180 days and lend the proceeds for 120 days.

C  Borrow for 240 days and lend the proceeds for 60 days.

【答案及解析】

C   To create a synthetic 60-day FRA on a 180-day interest rate, a bank would borrow for 240 days and lend the proceeds for 60 days, creating a 180-day loan 60 days from now.

【核心词汇】:bank ... interest

1银行存款利息是指银行支付给存款客户的利息

2银行贷款利息是指贷款客户支付给银行的利息

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