3. Trading in foreign exchange What are spot rates and forward rates? Suppose you open the newspaper today and observe the following indirect exchange rate quotations for the British pound: The British pound is selling at a in the forward market. Suppose you make a f 550,000 tish customer who has 60 days to pay you in cash. The customer will pay you in British pounds, but your company is based in the United ou are most concerned with the dollar value of the payment. If the customer pays you {550,000 today, how much is that worth in dolla. Suppose you make a E550,000 sale to a British customer who has 60 days to pay you in cash. The customer will pay you in British pounds, but your company is based in the United States, so you are most concerned with the dollar value of the payment. If the customer pays you fs50,000 today, how much is that worth in dollars? $863,342$964,912$1,015,697$914,127 Assume that the forward market is correct and the 60-day forward exchange rate quoted in the newspaper today (above) is the soot exchange rate 60 days from now. If the cuntomer walts the full 60 days and pays you 5550,000 , how much have you lost (in dolar terms) due to exchange nate fluctuations? 55,87655,596$5,316$5,036