Either the following information:

Spot exchange rate is 4.13%

An appreciation of this spot rate is expected in 90 days: 2.13%

a) Calculate the expectation and the conditional variance

b) What is the probability that the pound () will appreciate in 90 days to $ 1.63 / ?

c) Explain how a currency swap for an amount of $ 100,000 can be set up between an American firm (MSN) and a Japanese bank (Nomura) by applying swap points 23/18 knowing that the bid is 104.33 $ and ask is 104.37 / $. Using the theory of interest rate parity. Justify why this operation could be valid for Nomura