$($a$)$ It is $2000,$ one year before the introduction of the euro, the common currency of the euro area in physical form, although it was introduced as a unit of account on $1$ January A Belgian company asks IBM to quote a price in Belgian francs for computer equipment. The computers will be paid for in $4$ equal quarterly installments in Belgian francs $($BEF$),$ starting $90$ days from now. IBM wants a minimum current price of $$2\mathrm{.}5$ million to accept the contract. The spot and forward rates for the BEF are as follows: What is the minimum BEF value IBM must quote for this order? The relevant $($risk$-$adjusted$)$ annualised discount rates in the US are: Explain: