A bank buys a "three against six" $5,000,000 FRA for a three-month period beginning three months from today and ending six months from today. The reason that the bank bought the FRA was to hedge: the bank accepted a three-month deposit and made a six-month loan. The agreement rate with the seller is 5%. Assume that three months from today the settlement rate is 5.25%. The actual number of days in the FRA is 90. At settlement the bank will
a. pay $4,166.67 to the seller.
b. receive $3,084.52 from the seller.
c. receive $4,166.67 from the seller.
d. pay $3,084.52 to the seller.