=+7. Suppose the fixed-interest rates in the UK and Eurozone are 2% and 4% p.a., respectively, with continuous compounding. Also, assume that in the Euro market the current Sterling exchange rate is €1.200 (so that

£1,000 costs €1,200). What is the fair futures price in the Eurozone for a contract on £1,000 deliverable in six months? (Assume that a futures contract is the same as a forward.)