In the US market, the spot rate for the Dutch guilder is 0.6318 dollars per guilder. The 30-day riskless rate in the US is 5.56% p.a., compounded annually. The 30-day riskless rate in the Netherlands is 5.12% p.a., compounded annually.

4a) If you want to make a payment of 120 million guilders in 30 days without exposing yourself to exchange rate risk, what is the cost to you today of making that payment? 5pts

4b) What should the 30-day forward rate for the Dutch guilder be in the US market? 5 pts