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An exchange rate is 1.200 and the six-month domestic and foreign risk-free interest rates are 6% and 3% per year respectively (both expressed with continuous
An exchange rate is 1.200 and the six-month domestic and foreign risk-free interest rates are 6% and 3% per year respectively (both expressed with continuous compounding). What is the six-month futures exchange rate?
a 1.421
b 1.530
c 1.218
d 1.287
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