$3)$ You have a $100,000$ British Pound $($GBP$)$ payable in $1$ year. The forward GBPUSD exchange rate is

$1\mathrm{.}46.$ In a payoff profile, show how to hedge this payable with a forward exchange rate contract.

Suppose the actual spot exchange rate in one year is:

a$)1\mathrm{.}44$

b$)1\mathrm{.}45$

c$)1\mathrm{.}46$

d$)1\mathrm{.}47$

e$)1\mathrm{.}48$

Calculate the total profit or loss from the payable. Calculate the profit or loss from the forward contract.

What is the net profit or loss from hedging?