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Suppose the current exchange rate between the United States and France is $1.76/. The continuously compounded interest rate in the U.S. is 2%, while the
Suppose the current exchange rate between the United States and France is $1.76/. The continuously compounded interest rate in the U.S. is 2%, while the continuously compounded euro-denominated interest rate is 5%. What is the price of a 9 -month prepaid forward contract on the euro?
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