On the settlement date of a forward rate agreement (FRA), the party that holds the short position in the FRA will most likely:
A receive a payment if the applicable LIBOR rate is above the rate specified in the FRA.
B receive a payment if the applicable LIBOR rate is below the rate specified in the FRA.
C lend money to the party that holds the long position at the rate specified in the FRA.
D borrow money from the party that holds the long position at the rate specified in the FRA.