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S 0 or Spot Rate = $60 R or risk-free rate of interest = 6 % p.a. T or the maturity term = 5 months

  • S0 or Spot Rate = $60
  • R or risk-free rate of interest = 6 % p.a.
  • T or the maturity term = 5 months or 0.417.

F = S0erT

  • = 60 * e (0.06 * 0.417)
  • = 60 * 1.025336
  • = $61.52

Therefore, the FP is $61.52

I dont understand how to solve erT '

Can someone help me with steps on calculator

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