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2. (10 pts) Suppose that A(0)=10,A(1)=10.5 dollars, the present price of pound sterling is S(0)=1.6 dollars, and forward price is F=1.50 dollars to a pound
2. (10 pts) Suppose that A(0)=10,A(1)=10.5 dollars, the present price of pound sterling is S(0)=1.6 dollars, and forward price is F=1.50 dollars to a pound with delivery date 1. How much should a sterling bond cost today if it promises to pay 10 at time 1
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