A German importer needs to pay US$1,000,000 to its US supplier in one months time. What will be the cost of payment in by fixing the payment with certainty today? What is the difference from the rate quoted at the spot market?

The spot exchange rate between the Euro and the Sterling Pound is 1.1299-1.1312. The three month Euro deposits interest rate is 5.64% while the three month Sterling Pound interest rate is 4.86%. A Cypriot importer has to pay in three months a total of Stg250,000 to its UK supplier. What is the expected forward rate to be quoted by his bank and what will be his total cost in Euros?