ramdabom

FRA pays the long when underlying asset price/interest rate goes up and pays the short when asset price/interest rate goes down. You can simulate an long on FRA by going long on call and short on put. Going long on call will pay when asset price goes up but will not get exercised if asset price goes down. Short on put will have to make payment if asset price goes down but will not be exercised if asset prices go up. Short on FRA will be exactly opposite to long on FRA. I hope this helps!