Given the Following Information for a 90 Day Contract What Will Be the Forward Rate?
A)1FC =

Multiple Choice

Given the following information for a 90 day contract: ?

$$\begin{array}{l}\begin{array} { l c c } & \text { US Dollars } & \text { FC } \\\text { Value Today } & 3,750 & 5,000 \\\text { Interest Rate } & 4 \% & 7 \% \\3 \text { months interest } & 37.50 & 87.50 \\\text { Value in 3 months } & ? ? & ? ?\end{array}\\\text { The spot rate today is } 1 \mathrm { FC } = .75\end{array}$$ What will be the forward rate?

A) 1FC = .75 US Dollars
B) 1FC = .57 US Dollars
C) 1FC = .745 US Dollars
D) 1FC = .70 US Dollars