British investment fund Beta Capital Limited (Beta) plans to lend $100m at an annual interest rate of 11.3% for five years to a UK start-up company called BigBytes Limited. Beta has fixed its initial exchange rate to 1.2 dollars to the pound and the initial principal will be converted into pounds at that rate. There are no stage payments involved in the deal. Give your answers below to the nearest penny.

(a) What will be the pound-value of the loan at the start of the loan period? 

(b) What will be the pound-value of the loan at the end of the loan period?

(c) If Beta had fixed its forward exchange rate at the end of the loan period again to 1.2 dollars to the pound what would be the nominal dollar value of the loan be to Beta Capital?

(d) If Beta had not fixed its forward exchange rate, in what exchange rate circumstance would their actual loan value go up?

(e) Again, if Beta had not fixed its forward exchange rate, in what exchange rate circumstance would their actual loan value go down?

(f) Identify two other situations in which Beta's loan return might be worth less than originally anticipated.