Suppose you need to pay $V=75,000GBP$ in a year from now. Spot rate of GBP is $1\mathrm{.}5.$ You do not have enough USD to purchase $75,000$ GBP right now. Depending on the state of economy, the GBP spot rate in a year from nom may be:

Favorable state: $1\mathrm{.}1$ ; Neutral state: $1\mathrm{.}5$ ; Unfavorable state: $1\mathrm{.}7$

Calculate the benefit of hedging with forward contract for each of the three states. Assume the forward premium $=0\mathrm{.}01.$

Payoff $=($