2) Suppose you are the CFO of an Indian company and see the following quotes on your ForEx Trading.com screen: USDINR (S USDINR (6-mo fwd TusD(Cont Compounded) TINR(Cont Compounded TusD (6 months rate) Rate 42.00 42.50 5% pa. 7% pa. 0.05 -exp-10.0253-2.53% 0.07 TINR (6 months rate) exp( )-1-0.0356-3.56% Note that the above are trading symbols and not the units for the quotation. I have calculated the 6 month rate for you. You had learned this in your core finance class. Take this as a reminder and you should know how to do it. (a) If your company policy does not allow you to take a position in the forwards market, how many INR can you guarantee yourself against an expected payment of1 million USD that you will obtain in 6 months? (b) What is the 6 month forward rate implied by the covered interest rate parity? Is there an arbitrage opportunity? How would you implement a strategy that either buys or sells forward contracts for a nominal value of 1 million USD to take advantage of the arbitrage opportunity? (c) (d) Assuming nothing else changes except the INR interest rate. At what INR (6 month) rate will the opportunity disappear