three questions for the finance course

The basic economic situation you are modeling is from the point of view of a U.S.- based company that owes £100 million 60 days from today (Oct 24, 2016). 1) What is the total amount owed calculated at today’s spot rates. 2) Calculate the following using simulations (1,000 runs will suffice). a. The forecast 60-day change in the value of the obligation, and the standard deviation of that forecast; i. Using an assumption that the distribution of the daily changes in rates are Normal; and ii. Using a bootstrap method and thus avoiding any assumptions of the statistical distribution. b. For both methods in a. calculate a 5%-VAR for the obligation: i. In i. above, use a direct calculation using average value and the standard deviation of those values; ii. In ii. above, calculate the 5%-VAR using the simulation runs directly. 3) Suppose the following facts hold true for the US-company. The company can borrow money in USD($) for 60 days at an annual nominal rate of 3.5%, the company can invest money in England for 60-days and earn an annual nominal rate of return of 0.10%. Can you use this data to construct a money market hedge?