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The spot exchange rate for the Swiss franc is $0.60. The U.S. interest rate is 6 percent, and the Swiss interest rate is 5 percent.

The spot exchange rate for the Swiss franc is $0.60. The U.S. interest rate is 6 percent, and the Swiss interest rate is 5 percent. A futures contract expires in 78 days.

A. Find the appropriate futures price.

B. Find the appropriate futures price under the assumption of continuous compounding.

C. Using Part A, execute an arbitrage resulting from a futures price of $0.62.

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