Question: An American bank A and a European bank E agree a currency swap. In n successive weeks w = 1, 2,...,n, bank A will buy $100 million worth of euros from bank E, at a price pw per euro determined by the spot exchange rate at the end of week w. After n weeks:
(a) How many euros will bank A have bought?
(b) What is the dollar price per euro it will have paid, on average?