1. Suppose that today an individual obtains a 3-month forward contract to buy 10,000,000 at $.009292 per . In 3 months the individual will offset the contract, and on this date the spot rate is $.009081 per . Explain the process of offsetting the initial position and calculate the profit or loss.

2. Suppose that today an individual obtains a 6-month forward contract to sell 22,340,000 at $.009343 per . In 6 months the individual will offset the contract, and on this date the spot rate is $.009106 per . Explain the process of offsetting the initial position and calculate the profit or loss.