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Please notice that USD is the base currency as well as note for the fraction of the year for the forward price calculation 2) Assume
Please notice that USD is the base currency as well as note for the fraction of the year for the forward price calculation
2) Assume you have the following information about the EURO and USD: is 3.59%, the time to expiration is 90/365=0.2466. (3 Marks). a. What is the forward rate between the EURO and USD? b. If the observed forward rate is 0.9800/1USD, is there any arbitrage opportunity? If yes, show the steps involved in this transactionStep by Step Solution
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