8. (9%) The Bank of China makes the following quote "spot USD /TWD 29.0485/02, 30-days 14 19, 60-days26/17, 90-days 67/45". Transfer the point quotation into outright forward rates, and fill in the following table Rate USD/TWD bid Spot rate ask bid 30-days forward ask bid 60-days forward ask bid 90 days forward ask An exporter from Taipei was expected to PAY 420,000 $ 2 months later, in order to manage his fx risk, he decides to hedge with a forward arrangement by establishing a position of forward of S. a. Which rate would be used for his forward contract? b. How much TWD would be cost for his payment? 9. (10%) In March 1st, an Australian company is expected to pay 3,000,000 euros 3 months later. It decides to hedge the transaction with currency futures markets. The spot rate for euro on March. 1st is A$1.6320/; the euro currency futures for June delivery are selling for AS1.6318/. 3 months late, on June 15th, the spot rate for curp turns out to be A$1.6450/ and the euro currency futures for June delivery are selling for AS1.6451/. (a) Present the procedure for his hedging step by step in the following table. (b) Calculate the gain or loss in both cash and futures market respectively. (e) Calculate the net gain or loss of this hedge. (d) Calculate the NET A$ cost of this company. Table Date Cash market Futures market March. 1 June 15