Orca Co$.$ is a Fish Company based in Ireland. Founded in $1988$ it produces award

winning seafood products. It exports in various countries but its main trading partner is

based in Sweden. Orca$$s exports are invoiced in Swedish Krona. Denis Good, owner of

Orca Co$.$ has asked his local bank for a quotation of the prevailing spot rate in order to

convert a recent payment into euros. However, he has also asked three other nearby banks

for a quotation. Denis hasn$$t used a forward contract to hedge this payment.

i$.$ Do you think Denis can get a more favourable quote from the three nearby banks

than his local bank? Explain

ii$.$ Denis is considering using a forward contract to hedge the anticipated receivables

in Swedish Krona next month. The spot rate currently stands at $1\mathrm{.}45$ euros whilst

the one$-$month forward rate stands at $1\mathrm{.}4435$ euros. Denis wants to know whether

the quoted forward rate is reasonable. The current yield of the one$-$month

Treasury Bill in Ireland currently stands at $1\%$ whilst the corresponding yield of

the one$-$month Treasury Bill in Sweden is $1\mathrm{.}4\%.$ Based on this information, is the

one$-$month forward rate reasonable?