(1) The followings are observed in the market. Spot exchange rate 3 month forward 3 month interest rate $1 = W1,200 $1 = W1,300 Pus = Korea = 0.5% For a Korean investor with credit line of $1,000 or W1,200 thousand, what kind of arbitrage trade is possible? How does the arbitrage trade come to an end? Explain the difference between forward and option. Which is more effective for risk hedge? (15 points)