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Find the non-arbitrage futures price of a CME Euro FX futures contract if the Euro FX spot rate is $1.150, the USD Libor interest rate

Find the non-arbitrage futures price of a CME Euro FX futures contract if the Euro FX spot rate is $1.150, the USD Libor interest rate is 1.250 percent (125 basis points), the Euribor or European interest rate is -0.25 percent (-25 basis points), and the Euro-FX futures contract has two (2) months until expiration. 



 


 


 


 

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The formula for the nonarbitrage futures price is F S er1 r2 t Where F Futur... blur-text-image

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