So: 5. How should Y plc hedge a $5m payable due in 5 months? (20 marks) $1.3835 - 1.3855/ 5th Forward: 0.56 -0.68c/ discount Borrowing rates (pa): US 7%, UK 6.25% Deposit rates (pa): US 4.5%, UK 3.75% Opening Futures Price: $1.3810/ (Contract size = 62,500) Closing Futures Price: $1.3848/ 2. What would the 0.5, 1, 1.5 and 2 year zero rates be for the following set of Forward rates? (20 marks) n (years) 0.5 1 F. (%) 1.9 2.4 2.75 2.9 Zn (%) 1.9 2.15 2.35 2.49 1.5 2