Explanation

In the Black model for valuing interest rate options:

• The option has 1 year to expiration
• The underlying is a 3-month MRR deposit
• The FRA rate represents the forward rate starting at option expiration

Since the option expires in 1 year, the FRA rate applies to a 3-month deposit that:

• Starts in 12 months (at option expiration)
• Matures in 15 months (12 months + 3 months)

Therefore, the correct answer is C: investable in 12 months and matures in 15 months.