Forward rate agreement Flashcards by Unknown Unknown | Brainscape

Q

What does a discount on a FRA indicate?

A

It indicates that the GBP will weaken (go down) in the future

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What does a premium on a FRA indicate?

A

It indicates that the GBP will strengthen (go up) in the future

How well did you know this?

1

Not at all

2

3

4

5

Perfectly