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pls provide hand written solution 3. Suppose the U. S. interest rate for the next one year is 1% (annual compounding). The foreign interest rate

pls provide hand written solution image text in transcribed
3. Suppose the U. S. interest rate for the next one year is 1% (annual compounding). The foreign interest rate is 2% (annual compounding). The spot price of the foreign currency in dollars is $1.5. The forward price is $2. Determine the correct forward price and recommend an arbitrage strategy. (c/o, cost of carry)

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