Let the annual interest rate for dollars in New York be 8% and the annual interest rate for pounds in London be 6%. Let the annual interest rate for pounds in New York be 6%

The spot rate is 1 pound =1. USD 6025-1. USD 6035, 30 to 50 points per pound sterling for 3 months.

(1) Three-month forward exchange rate.

(2) If an investor has ￡100,000 invested in the New York market and uses swaps to avoid foreign exchange risk, what should he do?

(3) Compare the investment scheme in (2) with the direct investment in the London market. Which scheme is more profitable?