Question: Problem 8 Intro The current exchange rate between the dollar and the euro is $1.13 per euro. Interest rates are 3.6% in the U.S. and
Problem 8 Intro The current exchange rate between the dollar and the euro is $1.13 per euro. Interest rates are 3.6% in the U.S. and 5.4% in the euro area, for all maturities. The interest rates are quoted with continuous compounding. Part 1 - Attempt 1/8 for 10 pts. What should be the forward exchange rate for delivery in 6 months (in dollars per euro)? + decimals Submit
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