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Suppose that the spot exchange rate of EUR is 1.2545 USD for 1Euro. Suppose that...

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Finance

Suppose that the spot exchange rate of EUR is 1.2545 USD for 1Euro. Suppose that the 3 months USD interest rate is 0.50% annualized and Euro interest rate is 0.05% annualized (rates are continuously compounded). What is the 3-month forward exchange rate?

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