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A us importer of german cars wants to arrange a forward

Question: A US importer of German cars wants to arrange a forward contract to buy euros in half a year. The interest rates for investments in US dollars and euros are rUSD = 4% and rEUR = 3%, respectively, the current exchange rate being 0.9834 euros to a dollar. What is the forward price of euros expressed in dollars (that is, the forward exchange rate)?

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Mathematics: A us importer of german cars wants to arrange a forward

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Mathematics: A us importer of german cars wants to arrange a forward

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