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Consider an FRA (forward rate agreement) with the same maturity and compounding frequency as a Eurodollar futures contract. The FRA has labor underlying. Which of the following statements are true about the relationship between the forward rate and the futures rate?
A
The forward rate is normally higher than the futures rate.
B
They have no fixed relationship.
C
The forward rate is normally lower than the futures rate.
D
They should be exactly the same.