The spot exchange rate is $1.3/ and interest ra ge rate is $1.3/ and interest rate is 2% in US and 3% in Euro zone. What is the six-month forward exchange rate? Six month later, a firm needs to pay 1M for its imports from Euro zone. The firm wants to hedge the exchange rate risk using the synthetic forward. How should firm do that? Show that the synthetic forward achieves the same result as the forward contract