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the whole problem please and thank you 1. (13 points) Suppose that you observe the following spot exchange rates and three forward exchange rates (30-day,

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1. (13 points) Suppose that you observe the following spot exchange rates and three forward exchange rates (30-day, 90-day, and 180-day) between the British pound () and the U.S. dollar ($): S($/) = 1.4402, S(/S) = 0.6944 F30 ($/) = 1.4403, F30 (/S) = 0.6943 F90 ($/) = 1.4407, F90 (/S) = 0.6941 F180 ($/) = 1.4416, F180 (/S) = 0.6937 a. (3 points) Is the British pound trading at forward premium or forward discount relative to the U.S. dollar? b. (5 points) Calculate the forward premium or discount for the British pound using the 180-day forward exchange rate. c. (5 points) A U.S.firm is going to receive 2,000,000 from its exports to the U.K. in one month. Considering the dollar-pound exchange rate risk, the firm decides to conduct a forward hedge at the one-month forward rate to lock in the dollar value of the pound cash flow. How much in dollars will the U.S. firm receive in one month using the forward hedge? What will be the gain (loss) from this forward hedge if the firm expects the dollar-pound spot rate to be $1.43/ in one month

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