1. Suppose that the current spot exchange rate is Sask($1.2500/E) and the one-year forward exchange rate is FW1D($1.500/). The average one-year U.S. CD (Certificate of Deposit) interest rate is 10.0% and the average one-year U.K. CD interest rate is 5.0%. You can borrow at most $1,000,000 or the equivalent pound amount i.e. 666,667, at the current spot exchange rate. 10 points). Show whether or not interest rate parity (IRP) relationship holds