5. We consider the pricing of a forward start quanto put option on a foreign asset whose price dynamics under the risk neutral measure Q in the foreign currency world is governed by dSt St = (rf - q) dt tos dzu's, where rf is the foreign riskless interest rate and q is the dividend yield. The forward start quanto put comes into existence at some future time Ti and expires at T2 (T2 > Ti). The strike price is set equal to the asset price at 71. Suppose the exchange rate dynamics under the risk neutral measure Qa in the domestic currency world is governed by dFt Ft = (ra - rf) at + OF dzed, where ra is the domestic riskless interest rate. Let dZ, dzed = p dt. Find the price formula of the following forward start quanto put options with terminal payoff: P(ST2, Fo, T2) = Fo max( ST1 - ST2, 0). Explain why this quanto put option has the exposure to foreign exchange risk. [6]