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The dollar interest rate is 0.5% and ontinuously compounding, vard contract on euro dollar exchange rate with deliv- (3) The current euro dollar exchange rate
The dollar interest rate is 0.5% and ontinuously compounding, vard contract on euro dollar exchange rate with deliv- (3) The current euro dollar exchange rate is $1.35 per . Ti euro interest rate is 2%, both rates are continuously comp (a) Determine the value of the forward contract on euro dollare ery/strike price $1.3 per and maturing in 9 months. (b) Determine the forward dollar euro exchange rate maturing in 9 months
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