Umar, the Trader, has just received an economic projection indicating that the Dollar's value will likely increase relative to the Swiss Franc during the next three months. If he takes action on this information, he will short the $/SF contract for three months. We will assume that he sells $5,000,000 forward of Swiss Francs against US Dollars. Suppose the projection has confirmed accurate, and spot $/SF trade on September 5, 2019 is at $1.0434. Consider the forward price was $1.0735

1. How much the buying price? (1 marks)

2. Calculate Umars total profit? Explain. (7 marks)

3. If the Dollar depreciated, $1.0864, how much the total profit or loss? Explain. (7 marks).