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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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