Take the exchange rate from the Bank of England site and the bond yield as in Question 2 for both the UK and a country of choice for one year previous. Calculate the synthetic forward rate as UK pounds per unit of foreign currency × 1

+ UK interest rate/1 + other country interest rate and see whether one year later an importer would have gained or lost through taking out a forward rate. How would you extend this analysis to see whether or not forward rates would be worthwhile? Remember that there is an administration cost.