A US company is due to make a payment of 1.5m Euros in 6 months. The spot exchange rate for EUR-USD is 1.00207, and the 6 month forward exchange rate is 1.015461. This exchange rate is expressed as the number of USD for 1 EUR. i) What is the present value of the payment expressed in USD? Assume that the risk-free rate in USD is rUSD=1.0% for all maturities. ii) What is the interest rate differential between the USD and EUR riskfree rates implied by the observed FX forward rate? A US company is due to make a payment of 1.5m Euros in 6 months. The spot exchange rate for EUR-USD is 1.00207, and the 6 month forward exchange rate is 1.015461. This exchange rate is expressed as the number of USD for 1 EUR. i) What is the present value of the payment expressed in USD? Assume that the risk-free rate in USD is rUSD=1.0% for all maturities. ii) What is the interest rate differential between the USD and EUR riskfree rates implied by the observed FX forward rate