$(5)$ points $-$ You are given the following spot and forward rates

Spot Bid CAD$/$GBP $=0\mathrm{.}60$

Spot Ask CAD$/$GBP $=0\mathrm{.}61$

$9-$month Bid Forward CAD$/$GBP $=0\mathrm{.}58$

$9-$month Ask Forward CAD$/$GBP $=0\mathrm{.}59$

a$)$ Using the bid prices, compute the annualized forward premium$/$discount for the CAD$/$GBP

$(2$p$)$

b$)$ You are a British manufacturer exporting $10,000$ CAD of oil to Canada in $9$ months. What is

your expected revenue if you use a forward contract? Show your work $(2$ p$)$

c$)$ You are a Canadian manufacturer exporting oil to the UK in $9-$months. You will be paid

$50,000$ GBP$.$ What is your expected revenue if you use a forward contract? Show your work

$(2$p$).$