22. Given a 3 × 6 FRA with a rate of 10% and a time interval between three and six months of 92 days, plot the settlement amount if the three-month rate after three months ends up anywhere from 1% to 20%. Is your plot linear, convex, or concave? Why? If you are using FRAs to hedge your borrowing risk, does the shape of the payoff function cause you concern and why?
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