n May 2022, TradePro.co expects to receive GBP 50 million three months in August 2022. Therefore, the trader enters into a cash settlement currency forward to exchange these GBP for U.S. dollars at USD1.23 per pound at the expiration. If the GBP/USD exchange rate is USD1.2500 per pound at the expiration.

i) Draw a P/L graph for one forwards contract. (Hint: at least show the p/l with a breakeven point, a profit point and a loss point)

ii) Calculate and carefully explain the amount to be received or paid by TradePro.co at the expiration. (maximum word counts 100)