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3. FX forwards By constructing two different portfolios, both of which are worth one unit of foreign currency at time T, prove by replication that
3. FX forwards By constructing two different portfolios, both of which are worth one unit of foreign currency at time T, prove by replication that the forward price at time t for one unit of foreign currency is given by (rs-ri)(T-t F (t, T) XesXT-+) where X is the price at time t of one unit of foreign currency and Tis the maturity of the forward contract
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