What is the fair forward price for a contract

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The spot exchange rate between Australia and Singapore is AUD 1.00 = SGD 0.98. Interest rates (per annum) in Australia and Singapore are 4% and 2% respectively (continuously compounded).

What is the fair forward price for a contract expiring in 9 months time? That is, AUD 1.00 = SGD __?

Round your answers to 4 decimal places or you will be incorrect.

Reference no: EM132630923

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