"Currently British pound $($GBPUSD$)$ trades at $$1\mathrm{.}29.$ The pound continuously compounding interest rates are at $1\mathrm{.}00\%,$

$1\mathrm{.}20\%,$ and $1\mathrm{.}35\%$ at $1-$year, $3-$year, and $5-$year maturities, respectively. $($a$)$ Compute the forward price of pound $($round to $2$

decimals$)$ at $($i$)1-$year maturity $[$a$],($ii$)3-$year maturity $[$b$],($iii$)5-$year maturity $[$c$].($b$)$ If your portfolio contains long $2000$

contracts on pound $1-$year forward with a delivery price of $$1\mathrm{.}30,$ and short $2000$ contracts on pound $5-$year forward with the

delivery price of $$1\mathrm{.}50,$ what$$s the current value $($round to integers$)$ of $($i$)$ your long position in the $1-$year forward $[$d$],($ii$)$

your short position in the $5-$year forward $[$e$],$ and $($iii$)$ your total portfolio $[$f$].($c$)$ Suppose you decide to hold your above

portfolio for one year. One$-$year later, the pound price goes up to $$1\mathrm{.}40.$ The dollar interest rate curve remains flat at $5\%,$

and the pound interest rate curve also becomes flat at $1\%.$ What will be the value $($round to integers$)$ of $($i$)$ your long position

$[$g$],($ii$)$ your short position $[$h$],$ and $($iii$)$ your total portfolio then. $[$i$]$ Note: Assume a continuously compounding dollar interest

rate of $5\%$ for all maturities, whenever applicable. Keep two decimals"

Specified Answer for: a $,1\mathrm{.}34$

Specified Answer for: b $,1\mathrm{.}45$

Specified Answer for: c $,1\mathrm{.}55$

Specified Answer for: d $8113$

Specified Answer for: e $,-7520$

Specified Answer for: $f594$

Specified Answer for: $g20000$

Specified Answer for: $h,-23402$

Specified Answer for: $i,-3402$