Mr Smith wants to import goods from Japan and the banks with HBC Bank. The total cost of his import equas to USD 250. Derrick has enquired from his bank the spot rate, 3-month forward rate and 6-month forward rate for purchasing dollars for his import payment. HBC Bank has provided him with the following rates: SPOT RATE: 14.98 3 - MONTH FORWARD RATE: 15.18 6 - MONTH FORWARD RATE: 15.38

3.1 Calculate the cost of Smith's import order based on the spot rate quoted rate by HBC Bank

3.2 Calculate the cost of Smith's import order based on the 3 month forward rate quoted by HBC Bank

3.3 Calculate the cost of Smith's import order based of the 6 month forward rate quoted by HBC Bank

3.4 Assume that Smith's will pay 40% of the total amount immediately to his supplier and the remaining 60% will be split with the 40% due in 3 months and the next 20% due in 6 month's time. Calculate the cost of Smith's import

4.5 The supplier has offered him a 10% discount on the 25% due in 6 months (from the previous question 4 if he settled the balance in 3 month's time. Calculate the cost of Smith's import