Problem 11: Compute the mark-to-market value of the following short forward GBP contract. The size of the contract is GBP 3,800,000 and the forward rate is F₃^USD/GBP = 1.34; the spot rate at time of the valuation (today) is X_N^USD/GBP = 1.20. The GBP and USD interest rates are: r^GBP = 5% and r^USD = 4% ; assume the contract matures three years from now (so at t=3).

Problem 12: Compute the mark-to-market value of the following short forward NZD (New Zealand Dollar) contract. The size of contract is NZD 5,000,000 and the forward rate is F₄^USD/NZD = 0.79; the spot rate at time of the valuation (today) is X_N^USD/NZD = 0.71. The NZD and USD interest rates are: r^NZD = 8% and r^USD = 2%; assume the contract matures in four years from now (so at t=4).