The following contracts with 50 trading days (t = 50/250 = 0.20 years) to expiration and a continuously compounded annual risk-free rate of 1.5%. A foreign exchange futures contract for British pounds with the current spot price of USD1.32/GBP and a continuously compounded annual foreign risk-free rate of 2.6%.

Calculate the implied annual foreign risk-free rate in British pounds if the futures price is equal to USD1.315/GBP. How would an investor construct a portfolio to earn this rate of return?