As a currency trader at Goldman Sachs, you see the following quotes on your computer

screen:

a$.$ What are the outright forward bid and ask quotes for the USD$/$GBP at the $3-$month

maturity?

b$.$ Suppose you want to swap out of $$10,000,000$ and into pounds for $2$ months. What are

the cash flows associated with the swap? Do you have to repay more or less pounds than

you received? Why?

c$.$ One of your corporate customers calls you and wants to buy yen with dollars in $6$ months.

Goldmans has just handled a major IPO for this customer. What price would you quote?