12) (4 pts) Assume the following information: ### Current spot rate of GBP 6-month forward rate of GBP 6-month interest rate on $U.S. 6-month interest rate on GBP $1.271/1 GBP $1.295/1 GBP 5% per year (2.5% per 6 months) 1% per year (0.50% per 6 months) a) From a graphical analysis viewpoint of the Interest Rate Parity Condition, does this situation (Circle correct choice below) a Lie above the IRP Line b. Lie on the IRP Line c. Lie below the IRP Line A b) If the above situation who (if anyone) would benefit from covered interest arbitrage for a 6- month investment, (Circle correct response below) a. British Investors can earn a higher return from covered interest arbitrage compared to investing locally (Investing locally is a British Investor depositing money in British Bank) b. Neither British nor US Investors E. US Investors can earn a higher return from covered interest arbitrage compared to investing locally (US Investor depositing money in US Bank)