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EXERCISE 4. (Forward price) Determine the theoretical 3-month forward price of EUR against the USD. The current situation is the following: .Spot price: 1.35 EUR/USD

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EXERCISE 4. (Forward price) Determine the theoretical 3-month forward price of EUR against the USD. The current situation is the following: .Spot price: 1.35 EUR/USD . American 3-month interest rate: 5% . European 3-month interest rate: 4%

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