Question: In the previous question, if rates are continuously compounded and the forward exchange rate is $1.10/ , then what is the interest differential between

In the previous question, if rates are continuously compounded and the forward exchange rate is $1.10/, then what is the interest differential between the two currencies?


Data in previous question,

The spot exchange rate between the euro and the dollar is $1.2/. If the dollar interest rate is 2% for two years, the euro rate is 3% for the same maturity, and both rates are annually compounded, what is the two-year forward FX rate? 

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