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AZ Corp. sold USD10,000,000 against GBP forward at a forward rate of 0.8200 for $1 at Time 0. In the spot market at Time t,

AZ Corp. sold USD10,000,000 against GBP forward at a forward rate of 0.8200 for $1 at Time 0. In the spot market at Time t, $1 is worth 0.7600, and the annually compounded risk-free rates are 1.00% for the British pound and 3.00% for the USD. Assume at Time t the forward contract has one month to expiration. The forward price Ft(/$,T) at Time t will be closest to: *

0.75.

0.76.

0.82.

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