H company MTQ

H company , a large manufacturer is planning to sell an existing subsidiary and use the funds to buy land and build new factory . The proceeds of the sale are likely to be delayed so the directors have estimated that $10 m will be needed in 3 month's time for a period of 6 months. Given this, the directors have decided that a bank loan would be appropriate as a form if finance rather than equity sources After checking that interst rate yield curves in the financial press are normal rather than inverted , the treasurer is now looking to hedge the interest rate exposure. traditionally H company has used FRA for hedging interest rate risk exposure but the treasurer is now considering using interest rate futures although she is concerned that future will not be good as hedge as FRAs Which of the following statement concerning FRAs and interest rate futures is/are true a) In both cases Company H still needs to borrow money at the market rate in 3 months time b) Both have standardized contract sized c) Both result in a net gain or loss that can be offset against the loss or gain on the associated real world borrowing sir correct ans is a and c, but please can you explain me