Suppose the spot price of British pounds is $$1\mathrm{.}35,$ and the volatility of the pound is $25\%.$ The local risk$-$free rate is $7\%,$ and the pound risk$-$free rate is $10\%.$

a$)$ Using one$-$year options, how would you set up a short range forward?

b$)$ What strike price would you need for part $($a$)?$ Hint: Use Solver in the Black$-$Scholes excel model.