An investor has bought a financial asset that pays a variable interest rate at the...

If the market interest rate at the asset's maturity is lower than 3%. the bank will pay the investor for the difference in rates

If the market interest rate at the asset's maturity is lower than 3%. the asset's maturity will be extended for another year

If the market interest rate at the asset's maturity is higher than 3%, the investor will have the option to drop the FRA upon payment

If the market interest rate at the asset's maturity is higher than 3%, the investor will be able to receive the higher market rate