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Current spot rate and interest rates

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You hold a set of forward contracts on EUR, against USD (=HC). I will show you below the forward prices in the contract; the current forward prices (if available) or at least the current spot rate and interest rates (if no forward is available for this time to maturity). Compute the fair value of the contracts.

b) Purchased: EUR 2.5m 75 days (remaining). Historic rate: 1.300. Current spot rate: 1.5025. Risk free rates (simple per annum): 3% in USD, 4% in EUR.

Reference no: EM133068619

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