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YouTube T3-12b: Forward rate agreement: hedge as seller/buyer

Nicole Seaman

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The seller of in a forward rate agreement (FRA) is planning to lend in the future and hedges by "locking" in the FRA's fixed rate, so that if rates decrease, this seller receives a cash settlement.

David's XLS is here: https://trtl.bz/2Klbtqc

 
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