Investor A is investing in the stock-market, however their foreign investments require investments to be made in foreign currency. Assuming there are both currency risks and stock market risks answer the following.

Given: one year interest rates are 10% per annum continuous in the U.S (Domestic Market) and 20% per annum continuous in Foreign markets.

Additionally the exchange rate is 5 Foreign dollars to every 1 Domestic, the spot price being 5.

A.) What is the Forward Price of a One year contract?

B.) Say our Investor has an account with $5000 (U.S Domestic) they convert to Foreign currency and make 25% continuous in one year in foreign markets. After this one year the currency price has risen to 10 Foreign to every 1 US dollar. They convert back to U.S at this new rate of exchange. What was the amount in U.S dollars that our investor has made or lost in this one year? What is their rate of return?