Theoretical value of a six month foreign exchange futures

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Suppose you observe the spot rate in France to be 0.75€/USD, the U.S. risk-free interest rate of 3.75% (continuously compounded), and the current risk-free (cc) interest rate in the Eurozone is 6.75%, what is the theoretical value of a six month foreign exchange futures contract in terms of € per US dollar (select the closest answer).

Reference no: EM133056654

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