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The spot price of an underlying, with no yield, is $US1650. The yield curve (continuous compounding) on USD is 2%, 4%, 8% and 12% for
The spot price of an underlying, with no yield, is $US1650. The yield curve (continuous compounding) on USD is 2%, 4%, 8% and 12% for 1, 2, 3 and 4 years respectively. What is the three-year forward price on this underlying ?
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