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Todays spot exchange rate is $1.50 per euro. The continuously compounded annual risk-free interest rates are r(US) = 1.30 percent in the United States (domestic)
Todays spot exchange rate is $1.50 per euro. The continuously compounded annual risk-free interest rates are r(US) = 1.30 percent in the United States (domestic) and r(EU) = 3.40 percent in the Eurozone. What is the 10-month forward rate for the euro (in USD per euro)?
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