The treasurer of American Airlines calls Citibank and asks for a quote on British pounds (GBPs) (to be used in conjunction with a three-month dollar-denominated bridge loan for terminal expansion at Heathrow). (Note: the base currency is listed first and the quote currency second) GBPIUSD spot rate quote: 1.33401.3344 GBPIUSD 3-month swap points: 130120 a. The AA treasurer wants to buy spot and sell 3 months forward 1 million GBP (a spot-against-forward FX swap). At what rate of exchange in USD per GBP would the spot transaction take place? Show your answer to four decimal places. b. At what rate of exchange in USD per GBP would the forward transaction take place? Show your answer to four decimal places. c. Now suppose the corporate treasurer only wants to sell 3 months forward 1 million GBP (an outright forward). At what rate of exchange in USD per GBP would the forward transaction take place? Show your answer to four decimal places. 1. a: 1.3340 b: 1.3224 c: 1.3224 II. a: 1.3342 b: 1.3220 c: 1.3224 III, a: 1.3344 b: 1.3210 c: 1.3210 IV.a: 1.3342 b: 1.3212 c: 1.3210