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Suppose that the 3 0 - day forward rate on the euro is $ 1 . 4 1 0 9 4 , while the current
Suppose that the day forward rate on the euro is $ while the current spot rate is $
Which of the following best approximates the forward premium on an annualized basis?Hint: Only consider day months. In other words,
consider a year to be only days.
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