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Suppose the current exchange rate between the United States and Germany is $1.52/. The continuously compounded interest rate in the U.S. is 4%, while the
Suppose the current exchange rate between the United States and Germany is $1.52/. The continuously compounded interest rate in the U.S. is 4%, while the continuously compounded euro-denominated interest rate is 5%. What is the price of a 4 -month forward contract on the euro?
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