Find the non-arbitrage futures price of a CME Euro FX futures contract if the Euro FX spot rate is $1.150, the USD Libor interest rate is 1.250 percent (125 basis points), the Euribor or European interest rate is -0.25 percent (-25 basis points), and the Euro-FX futures contract has two (2) months until expiration. 

 

 

 

 

Answer rating: 100% (QA)

The formula for the nonarbitrage futures price is F S er1 r2 t Where F Futur... View the full answer