Question: please work through and include formulas The following problems have been discussed in class: 1. a) Design the synthetic for a currency forward. Use a

please work through and include formulas

The following problems have been discussed in class: 1. a) Design the synthetic for a currency forward. Use a Money Market interpretation. b) If the interest rate in USD is 1%, and is 1.2% for Euro deposits, find the forward price of a Euro when the current exchange rate is 1 . c) If the Forward price of a Euro is currently 1, how could you use the synthetic to do arbitrage? Explain each step

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