2. Assume the following information regarding U.S. and European annualized interest rates: Currency U.S. Dollar ($) Euro ( Lending Rate 6.73% 6.80% Borrowing Rate 7.20% 7.28% Also, you are given: Spot rate ($/6) 360-day forward rate ($/) Bid price 1.10 1.13 Ask price 1.12 1.15 You borrow $1 to invest in a denominated deposit for the next 360 days. a) Calculate the cost of borrowing $1 for 360 days, that is, the amount of $ to be paid 360 days later in order to pay the debt off. b) Calculate the 360-day absolute return form the foreign deposit, that is, the amount of produced by the EUR deposit (covered foreign investment). c) Is there an arbitrage opportunity br borrowing $ to invest in via covered arbitrage? Explain your