(b) Write down the value function of a portfolio with an initial allocation of 200,000 worth of Euros, and 60,000 of domestic (Pound) cash. Assume the risk-free rate in Euro is 4%, the domestic risk-free rate is 7%, and that the initial Euro/Pound exchange rate is 1.45/Euro. How much is this portfolio worth 5 years later if the Euro/Pound exchange rate in 5 years is 1.20/Euro? (25 Marks)