Explanation:

• Option A (Incorrect): Forward rate agreements (FRAs) typically have varying fixed rates for different maturities, whereas an interest rate swap maintains a constant fixed rate throughout its term. This makes the fixed rates dissimilar between the two instruments.

• Option B (Correct): Both FRAs and interest rate swaps share similarities such as a symmetric payoff structure and the absence of upfront cash flows. This aligns with the characteristics of derivative contracts where no initial exchange of principal occurs.

• Option C (Incorrect): FRAs involve a single settlement at the beginning of the interest period, while interest rate swaps entail periodic settlements at the end of each period. Thus, the timing and frequency of settlements differ between the two.