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Suppose that the current value of the S&P 500 stock index is USD 3000. Assume that the rates of interest in USD and Euro are

Suppose that the current value of the S&P 500 stock index is USD 3000. Assume that the rates of interest in USD and Euro are respectively 3% and 1% per year with continuous compounding, and that the S&P 500 index pays a continuous dividend rate of 2% per year. Finally, the spot exchange rate is USD 1.1 per Euro.

Compute the forward price of the S&P 500 in USD for delivery in one year.

Compute the forward price (exchange rate) of USD in Euro for delivery in one year.

Compute the forward price of the S&P 500 in Euro for delivery in one year.

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