The seller of in a forward rate agreement (FRA) is planning to lend in the future and hedges by "locking" in the FRA's fixed rate, so that if rates decrease, this seller receives a cash settlement.
David's XLS is here: https://www.dropbox.com/s/75psfdv2sdne3s1/042518-fra-hedge.xlsx?st=dtrvv2xd&dl=0
David's XLS is here: https://www.dropbox.com/s/75psfdv2sdne3s1/042518-fra-hedge.xlsx?st=dtrvv2xd&dl=0
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