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CREATING AN ARTIFICIAL CONTRACT: Create a 1 - year forward contract at time 1 ( i . e . , f ( 1 , 1

CREATING AN ARTIFICIAL CONTRACT: Create a

1 -

year forward contract at time

1 (

.

.,

f (1, 1))

using the existing spot rates. Assume you plan on buying this artificial contract.

What is the rate of this forward contract? Show rates and prices to

4

decimal places

(

.

XXXX

%

; $XX

.

XXXX

) .

Please show Excel Formulas in Solution!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

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