Finance · Forward Rate Agreements

A corporate treasurer buys a 3 vs. 6 month Forward Rate Agreement (FRA) on a Notional Principal of 10 crore at a Contract Rate of 6.50%. At the settlement date (3 months later), the Reference Rate is 7.00%. I. The Long Position in the FRA is equivalent to locking in a borrowing rate of 6.50% for the three-month forward period. II. Since the Reference Rate (7.00%) is higher than the Contract Rate (6.50%), the treasurer will receive a net settlement payment. III. The settlement amount is calculated based on the 0.50% interest difference on the Notional Principal for the 3-month period, discounted back to the settlement date. Which of the above statements are correct?