Need help with review 7-10

Assume that the three-month FR = $2.00/L1 and a speculator believes that the spot rate in three months will be SR = $2.05/L1. How can an individual speculate in the forward market? How much will the speculator earn if he or she is correct? If the speculator or Problem 7 believes that the spot rate in three months will be SR = $1.95/L1, how can he or she speculate in the forward market? how much will the speculator earn if he or she correct? what will the result be if in three months SR = $2.05/L1 instead? If the positive interest rate differential in favour of a foreign monetary centre is 4 percent per year and the foreign currency is at a forward discount of 2 percent per year, roughly how much would an investor earn from the purchase of foreign three-month treasury bills if he or she covered the foreign exchange risk? For the given of Problem 91indicate: How much would an investor earn if the foreign currency were at a forward premium of 1 percent per year? What would happen if the foreign currency were at a forward discount of 6 percent per year