Suppose a party holds a contract to purchase 100000 euros
Suppose a party holds a contract to purchase 100,000 euros in 36 days at a rate of $1.31. The spot rate for euros is $1.28. The U. S. interest rate is 1.23% and the euro interest rate is 1.51%. What is the value of the contract?
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suppose a party holds a contract to purchase 100000 euros in 36 days at a rate of 131 the spot rate for euros is 128
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