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5. A US based firm Fishing Well is negotiating with its bankers to enter into a 2- year EUR forward contract. How would you, as

5. A US based firm Fishing Well is negotiating with its bankers to enter into a 2- year EUR forward contract. How would you, as an analyst, go about determining a quote? The spot rate is USD 1.5591. The annualized interest rates in the US and the Eurozone are 5% and 3% respectively. What should the forward rate for the 2-year EUR contract be

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