Question: Given the following: So = $1.0846/; E (S1 (3-months)) = $1.0684/ F3-months = $1.1048/ Where E () refers to expected. Do you think there

Given the following: So = $1.0846/; E (S1 (3-months)) = $1.0684/ F3-months = $1.1048/ Where E () refers to

Given the following: So = $1.0846/; E (S1 (3-months)) = $1.0684/ F3-months = $1.1048/ Where E () refers to "expected." Do you think there is anything off or not right with the three-month forward rate given above for the euro? If yes, what is off or wrong with it?

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