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Suppose you observe the spot euro at $1.38/, the U. S. risk-free interest rate of 0.25% (continuously compounded), and the European risk-free interest rate of

Suppose you observe the spot euro at $1.38/, the U. S. risk-free interest rate of 0.25% (continuously compounded), and the European risk-free interest rate of 0.75% (continuously compounded). Identify the theoretical value of a six month foreign exchange futures contract (select the closest answer). show your work

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