Question: 3. Consider a forward contract on the British pound (GBR) with 90 days to expiry. The USD and GBP interest rates are 2.3% and 5.6%,

3. Consider a forward contract on the British pound (GBR) with 90 days to expiry. The USD and GBP interest rates are 2.3% and 5.6%, respectively (both interest rates are annual rates). The current spot rate is 1.3145(S/E). Calculate the forward price (S/). Show your calculations. Forward rate= spot rate *(1 + Interest rate of USD for 90 days)/(1+ interest rate of GBP for 90 days)

3. Consider a forward contract on the British pound (GBR) with 90 days to expiry. The USD and GBP interest rates are 2.3% and 5.6%, respectively (both interest rates are annual rates). The current spot rate is 1.3145($/f). Calculate the forward price (S/f). Show your calculations. Forward rate - spot rate * (1+ Interest rate of USD for 90 days )/(1+ interest rate of GBP for 90 days)

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