Question
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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Economics For Investment Decision Makers
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