Please correct B and C for #5

Please do A, B and C2 for #8

Suppose that you are a U.S.-based Importer of goods from the United KIngdom. You expect the value of the pound to Increase agalnst the U.S. dollar over the next 30 days. You will be makIng payment on a shipment of Imported goods in 30 days and want to hedge your currency exposure. The U.S. risk-free rate is 5.0 percent, and the U.K. risk-free rate is 4.0 percent. These rates are expected to remain unchanged over the next month. The current spot rate is $2.00. Requlred: a. Whether you should use a long or short forward contract to hedge the currency risk. b. Calculate the no-arbitrage price at which you could enter Into a forward contract that expires in 30 days. c. Move forward 10 days. The spot rate is $203. Interest rates are unchanged. Calculate the value of your forward position. Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Calculate the no-arbitrage price at which you could enter into a forward contract that expires in 30 days. Note: Do not round intermediate calculations. Round your answer to 4 decimal places. Suppose you are a British venture capltalist holding a major stake In an e-commerce start-up In Silcon Valley. As a British resident, you are concerned with the pound value of your U.S. equity position. Assume that if the American economy booms in the future, your equity stake will be worth $1,000,000, and the exchange rate will be $1.66 per pound. If the American economy experlences a recession, on the other hand, your American equity stake will be worth $500,000, and the exchange rate will be $1.86 per pound. You assess that the American economy will experlence a boom with a 70 percent probability and a recession with a 30 percent probability. Required: a. Estlmate your exposure to the exchange risk. b. Compute the varlance of the pound value of your American equity position that is attributable to the exchange rate uncertainty. c-1. How would you hedge this exposure? c-2. If you hedge, what is the varlance of the pound value of the hedged position? Answer is not complete. Complete this question by entering your answers in the tabs below. Estimate your exposure to the exchange risk. Note: Do not round intermediate calculations. Round final answer to nearest dollar. Compute the variance of the pound value of your American equity position that is attributable to the exchange rate uncertainty. Note: Do not round intermediate calculations. Round final answer to nearest dollar. Complete this question by entering your answers in the tabs below. If you hedge, what is the variance of the pound value of the hedged position? Note: Do not round intermediate calculations. Round final answer to nearest dollar. Complete this question by entering your answers in the tabs below. Move forward 10 days. The spot rate is $2.03. Interest rates are unchanged. Calculate the value of your forward position. Note: Do not round intermediate calculations. Round your answer to 4 decimal places