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Theoretical price of foreign exchange futures
3 months USD/CHF (Note: This is USD/CHF, not CHF/USD.

This has different manifestations in the foreign exchange market. ) theoretical exchange rate price =1{1.368 * e [(1.05%-0.35%)/4]} =1(1.368 *.

Because the 3-month exchange rate of USD/CHF is 0.735 and the theoretical price is 0.7297, it shows that USD is overvalued and should be arbitrage by selling USD/CHF futures contracts in futures.