Suppose that the spot exchange rate betweed the US Dollar (USD) and Vietnamese Dong (VND) is VND 24,0000.00 / USD 1.00. The US risk-free rate is 4% and the VND risk-free rate is 7%. What is the price of a forward contract today such that no arbitrage is possible? Use the VND/USD quote.

Suppose that the spot exchange rate between the US Dollar (USD) and Vietnames Dong (VND) is VND 24,0000.00 / USD 1.00. The US risk-free rate is 4% and the VND risk-free rate is 7%. What is the price of a forward contract today such that no arbitrage is possible? Use the VND/USD quote. NB: Do NOT use approximations to solve this problem, e.g., Equations 18.5, 18.6, 18.7 in your text