Question Two. a) An Italian company is expecting to receive Kuwait dinars in 9 months' time. The spot rate is lire/dinar 5.467.Your Company could borrow in dinar at 9% per annum or in Lire at 14% per annum No forward rate exist for 9 months' time Required: I. Forward premium or discount and interpret the result. (4 Marks) II. Determine the 9 Months forward exchange rate (4 Marks) b) The spot exchange rate is 1SA Rand = Ksh 7.5 whereas the 3 -Months forward exchange rate shall be 1 SA Rand = Ksh 7.8 .An statute investor will earn an annual return of 14% in the money market in south Africa. Compute the equivalent annual return in the money market in Kenya (7 Marks) (Total: 15 Marks)