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Calculate the fair value of the following contracts with 50 trading days (t = 50/250 = 0.20 years) to expiration and a continuously compounded annual
Calculate the fair value of the following contracts with 50 trading days (t = 50/250 = 0.20 years) to expiration and a continuously compounded annual risk-free rate of 1.5%.
A foreign exchange futures contract for British pounds with the current spot price of USD1.32/GBP and a continuously compounded annual foreign risk-free rate of 2.6%.
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