Given the following entries in the debit and credit columns of a BOP; calculate the current account balance, Credits(+) Debits) LExport of goods 4,000 Increase in private assets abroad -4,000 2. Increase in foreign owned assets in US 10,000 Imports of goods -10,000 3.Export of com 1,000 Unilateral transfer to UK -1,000 4.Export of service 2,000 Decrease in foreign private asset In US -2,000 5.Investment income Decrease in foreign private asset Received from UK 2,500 in US -2,500 6. Increase in foreign private Increase in US asset abroad -5,000 asset in US 5.000 28.500 - 28.500 (B) The spot rate for euro is $0.99 and the three month forward ate is $102 0) Calculate the forward discount/remium How can a US importer who has to pay 100 eure three months from April 28 hedge foreign exchange risk in the forward matlat (W) Suopose a speculator believes that the spot rate in three months will be 105 How can be speculate using the forward market? If he invests $100, what will this prohthis speculation is right Given the following entries in the debit and credit columns of a BOP; calculate the current account balance, Credits(+) Debits) LExport of goods 4,000 Increase in private assets abroad -4,000 2. Increase in foreign owned assets in US 10,000 Imports of goods -10,000 3.Export of com 1,000 Unilateral transfer to UK -1,000 4.Export of service 2,000 Decrease in foreign private asset In US -2,000 5.Investment income Decrease in foreign private asset Received from UK 2,500 in US -2,500 6. Increase in foreign private Increase in US asset abroad -5,000 asset in US 5.000 28.500 - 28.500 (B) The spot rate for euro is $0.99 and the three month forward ate is $102 0) Calculate the forward discount/remium How can a US importer who has to pay 100 eure three months from April 28 hedge foreign exchange risk in the forward matlat (W) Suopose a speculator believes that the spot rate in three months will be 105 How can be speculate using the forward market? If he invests $100, what will this prohthis speculation is right