7a) Assume that the risk-free interest rate is 4 percent, and that an item today costs NOK 50. What is the correct price for a forward contract to buy this item in two years according to the formula from the lecture?

7b) Assume that the current exchange rate gives 10 kroner for one euro. The interest rate in euros next year is 20 per cent, while the interest rate in Norwegian kroner is 0 per cent. What is the price of a forward contract for one euro in one year?

O 54.08 O 50 O 52 O 48.08 O 8.33 O 10 O 12 10.2