international finance

QUESTION ONE a. Compare and contrast a currency forward contract and a currency futures contract. 6 MARKS b. You are planning a business trip that will take you to Nigeria, Kenya and South Africa. You have been advised to carry the equivalent of C4,000 in the currency of each of the countries to be visited. Your bank quotes the following spot rates: Kenyan shilling per cedi: KES 24.30-27.00 Nigerian naira per cedi: NGN 76.50-83.10 South Africa rand per cedi: ZAR 3.48-3.74 Your bank also commits to buy back any unused foreign currency after your trip, using the same quotes above. i. How many KES, NGN and ZAR would you have if you accept the quotes above ii. If you return to Ghana with KES 10,000, NGN 20,000, and ZAR 3,000, how many cedis would you have if you decide to use your bank? iii. A Nigerian you met in South Africa is offering to take your NGN 20,000 in exchange for ZAR 800. Should you accept this offer? If not, what NGN/ZAR rate would make you indifferent