2) CAD interest rate rd: 1.75% (c.c.), USD interest rate rf-2.75% (cc). The spot USD/CAD exchange rate is $1.32. a) What is the one year forward USD/CAD exchange rate Fo,1? Does this mean a stronger or a weaker Canadian dollar (relative to the US dollar)? b) Suppose someone offers to sell you $1,000,000 U.S. dollars for $1,310,000 Canadian dollars in one years time. If you agree to this trade, what is the future value (in 1 year) of your expected profit/loss? c) Construct an arbitrage portfolio (of some amount of USD and some amount of CAD) to guarantee your profit