ONLY ANSWER E,F,G,H PLEASE.

1. Explain how the Forward contract works. Use numerical examples and explain the different scenarios. You can elaborate and include graphics and tables. Here, some questions you can answer in your explanation and will help to understand better how the Forward contract works:

a. What is the domestic currency? And the foreign one?

b. Hint: Use better foreign currency/domestic exchange rate. ($ per one unit of ) It will help you to explain better depreciation and appreciation of foreign currency and the operation and function of the Forward.

c. What does foreign currency appreciation means? Amount of $ per one unit of rate will increase or decrease? d. Are you going to buy or sell the foreign currency? Are you Importer of Exporter?

e. For the holder of the Forward, Is it better appreciation or depreciation of foreign currency?

f. Up & low barriers: Are they activated during the period or only at expiration date?

g. Do you think the Forward is useful for hedging? Does the Forward hedge all the scenarios?

h. What is the best option for the customer? And for the Bank?

ONLY ANSWER E,F,G,H PLEASE.