Suppose the U.S. dollar interest rate is 6% for one-year investment and the equivalent Japanese yen investment is 1%.The market expects that the spot exchange rate between the dollar and the yen will stay unchanged for the next year.Which of the following would constitute a "carry trade"?

a.Borrow U.S. dollar, convert to Japanese yen, and invest in yen for one year.

b.Borrow Japanese yen, convert to U.S. dollar, and invest in dollar for one year.

c.Borrow U.S. dollar, convert to Japanese yen, and invest in dollar for one year.

d.Borrow Japanese yen, convert to U.S. dollar, and invest in yen for one year

Refer to the information for Questions 21 through 25.

Swap Points(In dollars) Bid(In dollars) Ask(In dollars)

Spot 1.247700 1.247900

1M FWD 5.31 6.31

3M FWD 24.63 25.38

6M FWD 54.33 54.93

1Y FWD 125.95 129.7

What is the bid price of the British pound in the one-month forward market? Keep six digits after the decimal point.