The exchange rate of the swap is small before and then large, that is, the forward exchange rate is smaller than the spot exchange rate, and the forward pound is discounted.

(2) According to the interest rate parity, the currency with high interest rate depreciates for a long time. In this case, the pound is a currency with a low spot interest rate, but it will depreciate in the long run. In other words, investment arbitrageurs can get the benefits of exchange rate changes at the same time. Of course, pound holders should invest in the new york market, so that they can benefit from arbitrage and exchange rate changes.

Assuming that the exchange rate remains unchanged, the pound holder immediately converts it into dollars for investment for three months, and then recovers the investment and sells it after three months, minus the opportunity cost and income of pound investment:

100000* 1.6025*( 1+8%/4)/ 1.6045- 100000*( 1+6%/4)=372.85

(3) Swaps are used to avoid foreign exchange risks. The owner of the pound immediately converts it into dollars, invests it for three months, and sells the forward of the principal and interest of the three-month dollar investment. Recover the principal and interest of the US dollar investment at maturity, sell the forward contract to get the pound, and subtract the opportunity cost of the pound investment, which is the arbitrage net income:

100000* 1.6025*( 1+8%/4)/ 1.60 15- 100000*( 1+6%/4)=563.69