Please show ALL of the work please for Question 1 and 2 using the information provided. Answers are also included. Just need to show work.

6. (Forwards, 4pts Given the information, answer the following questions. Spot rate (SAE) 1.11 1.1264 6-month forward rate ($/E) 6.00% 6-month U.S. dollar interest rate 3.00% 6-month euro interest rate (1) (1pts)Compute the 6-month forward premium or discount for euro. f 0.02955665 (2) (3pts Barclays sells 500 million forward for dollars for delivery in six months. Analyze risk that Barclays is facing and illustrate a possible solution(swap transaction to hedge such risk using the following chart Risk: euro appreciates against the dollar. 1 Prepare(Buy) 492.6108 Deliver 500 Receive S 563.2020 Borrow 546.7980 Repay 563.2020