单选题 The term (maturity) of a forward rate agreement is 90 days and the underlying rate is 180 - day LIBOR. If 180-day LIBOR increases over the term (life) of the contract, which of the following best describes the descriptive notation for the contract and the party receiving payment at expiration, respectively? Descriptive notation Party receiving payment at expiration ①A. 3 × 6 Long ②B. 3 × 9 Long ③C. 3 × 6 Short

A、

A. ①
B、

B. ②
C、

C. ③

【正确答案】 B

【答案解析】The forward rate agreement contract id for three months and interest is paid nine months from the contract initiation date, hence the notation 3 × 9 ; when the rate on the underlying increases, the party that is long receives the payment at expiration.