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3. (2 pts) The 90-day forward rate for the euro is $1.17, while the current spot rate of the euro is $1.15. What is the

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3. (2 pts) The 90-day forward rate for the euro is $1.17, while the current spot rate of the euro is $1.15. What is the annualized forward premium or discount of the euro? A) 1.74 percent Discount. 1.17=1.15(lte). B 1.74 percent Premium c) 6.96 percent Discount 0.02= 11SP (0) 6.96 percent Premium. p=0.0174K 60 -6.96. 4. (4 pts) Today is Oct. 1. The current direct spot rate on the EUR is $1.105 ($1.105/1EUR) and the June 2020 Futures contract on the EUR is available for $1.112, One futures contract on the EURO is for 125,000 Euros and the contract expires on June 15th). What will the June 2020 futures price be on Dec. 15th 2019, (Hint: there are 180 days between Dec, 15th and June 15th) if the spot price on the Euro moves to $1.15/1 EUR on Dec. 15th? Assume the June Euro futures contract will be selling at an annualized forward premium of 1.8% on Dec 15th. Hint: F = 5*(1+p) Il tl.16 on Dec. 15th

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