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need explanation, thanks A forward contract on US$ matures in one time step. Currently AU$1 buys US$0.65, the domestic return over one time step is
need explanation, thanks
A forward contract on US\$ matures in one time step. Currently AU\$1 buys US\$0.65, the domestic return over one time step is Rd=1.07 and the US return over one time step is Rf=1.02. What is a rational value for the forward rateStep by Step Solution
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Options Futures And Other Derivatives
Authors: John C. Hull
7th Edition
0136015867, 9780136015864
