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Suppose you observe the spot rate in France to be 0.90/USD, the U. S. risk-free interest rate of 3.25% (continuously compounded), and the current risk-free
Suppose you observe the spot rate in France to be 0.90/USD, the U. S. risk-free interest rate of 3.25% (continuously compounded), and the current risk-free (cc) interest rate in the Eurozone is 6.75%, what is the theoretical value of a six month foreign exchange futures contract in terms of per US dollar (select the closest answer).
|
| 0.9254 |
|
| 0.8756 |
|
| 0.9035 |
|
| 0.9129 |
|
| 0.8851 |
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