On february 4 of a particular year the spot rate for us


On February 4 of a particular year, the spot rate for U.S dollars ($) expressed in euros (€) was $0.7873/ €. The U.S interest rate (compound semiannually) was 5.36 percent, whereas the euro interest rate (compound semiannually) was 3.11 percent. From a European perspective, what should be the forward rate of a contract that expires September 4? (Assume that each month is one-twelfth of a year.)

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Finance Basics: On february 4 of a particular year the spot rate for us
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