Question: Synthesize using a forward rate agreement Explain in your own words, how you could synthesize a forward investment of one dollar (say at some future

Synthesize using a forward rate agreement Explain in your own words,

Synthesize using a forward rate agreement

Explain in your own words, how you could synthesize a forward investment of one dollar (say at some future date S, resulting in a return at a further date T>S). To this end, use the most basic financial instruments. To get full points, please compute the return of such investment

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