Kaplan 1st set of exams - Exam 3 morning session - Question 39

CFA Level II
#1

hi Everyone,

In the question, Kaplan is speaking about and FRA 2x5 but in the calculation they are not using the 5months Libor but rather the 3months Libor!!!

Is it me or is there a mistake here?

Shouldn’t the FRA 2x5 be calculated from the 2 months and 5months Libor?!!

#2

There’s an intentional mistake, that’s why the answer to the question is A. The wording and style of that question is pretty terrible imo, but they’re asking how many of the inputs in the calculation from the question are correct.