FX - Outright and Replication porftolio

[FireFly81]

Hi guys,

I hope you can help me I'm looking for the solution for part B....

As the abtirage-free price for a long or short foward must equal the same I got the following result for part A: 1.328965

Can anyone help me with part B - I don't know how to build a replica-portfolio....

Thx in advance.............



PS: The exercise is attached

 

[HallsofIvy]

What course was this for? It looks more like a question in economics or finance than mathematics.