If the spot $/ rate is 1.20 and the interest rates are r $ = 0.03 and

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If the spot $/€ rate is 1.20 and the interest rates are r_$ = 0.03 and r_€ = 0.05 for T = 1 year (in continuously compounded terms), then what are the forward points for one year?

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Derivatives Principles And Practice

ISBN: 9780078034732

2nd Edition

Authors: Rangarajan Sundaram

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Question Posted: Jan 11, 2024 09:03 AM

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If the spot $/ rate is 1.20 and the interest rates are r $ = 0.03 and

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First work out the forward ex...View the full answer

Derivatives Principles And Practice

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