.No.1: It is the end of September 2018. The current PKR/USD exchange rate is 135.26, the Pakistani and US three-month interest rates are 6% and 4.5% per annum respectively. A forecast indicates that the exchange rate at the end of 2018 will be 128.50. a) What would you do based on this information if you expect to receive USD 50000 at the end of year 2008? b) If the actual exchange rate turns out to be 136.50, calculate the percentage forecasting error. c) If you expect a forward contract for end of 2018 at an exchange rate 132.75, will you hedge it or not? d) Based on answer in part c), how much profit/loss was incurred by acting on this forecast? (Marks 06