Question: 4. The current exchange rate between U.S. Dollars and Euros is 1.111$/. The current exchange rate between U.S Dollars and British Pounds is 1.562$/E. The

4. The current exchange rate between U.S. Dollars and Euros is 1.111$/. The current exchange rate between U.S Dollars and British Pounds is 1.562$/E. The one year forward exchange rate between U.S dollars and British Pounds is 1.638\$/E. The Euro-denominated continuously compounded risk free rate is 4.25% The British Pound-denominated continuously compounded risk free rate is 1.25%. Calculate the one-year forward exchange rate between U.S. dollars and Euros

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