Abank bought 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 3-month deposit and made a six-month loan. the agreement rate with the seller is 5 percent. assume that three months from today the settlement rate is 5.25 percent. who pays whom? how much? when? the actual number of days in the fra is 90.

The third program provides families with $50 in food stamps each week, redeemable for both perishable and nonperishable food. the fourth policy instead provides a family with a box of nonperishable foods each week, worth $50. use two graphs to illustrate that a family may be indifferent between the two programs, but will never prefer the $50 box of nonperishable foods over the $50 in food stamps. state your answer and use a consumer choice model for perishable food and nonperishable food to graphically justify your choice.