1. A foreign exchange trader sees the following prices on his computer screen: Spot rate, Norwegian krone per dollar: NKr 8.8181/$ 3-month forward rate: NKr 8.9169/$ U.S. 3-month Treasury bill rate: 2.60% annualized) Norwegian 3-month Treasury bill rate: 4.00% (annualized) Could the trader profit by conducting a covered interest arbitrage operation between US$ and Norwegian krone? Explain. Note: divide the Tbill rate by 4 to obtain the interest rate earned over 3 months. 2. Revisit the arbitrage example shown in class. Given the following exchange rates: Japanese Yen per US dollar: Y110/$ US dollar per Euro: $1.25/ Japanese Yen per Euro: 130/ If you have $100, show the trades you would make to take the advantage of the arbitrage opportunity. What is your profit