3. An Australian company is planning to sell 1000 US-based shares to a US company. The two companies enter into a forward contract to sell the shares for some US\$ amount F in one month's time. To ensure it can get a reasonable exchange rate for the payment in US\$, the Australia company also enters into a short forward contract to sell the US\$ currency F at some forward rate k. The current price of one share is S(0)=US$12 and the current exchange rate is AU$1 buys US $0.68. The current Australian return is Rd=1.04 over one month and the current US return is Rf=1.02 over one month. (a) Consider the forward contract with shares as the underlying asset. According to the one-step binomial model, what is a fair forward price F (in US\$) for the 1000 shares? (b) Consider the forward contract with USS as the underlying asset. According to the one-step binomial model, what is a fair value for the forward rate k ? (c) In AUS, what payoff will the Australian company receive after both forward contracts are completed