1. The interest rates are quoted on a 360 -dxy year, Is there an opportianity for covered interest. arbitrage? 2. If the tnder has can borrow 1,000,000 or $1,000,000, explain and disgran the specific steps this trader must take to make a covered intereat arbitrage profit. 3. To offset the existing arbitrage opportunity, in what directions do spot and forward rate move? (Increase or decrease) explain