4. Suppose that the spot exchange rate is 1.205/ and the U.S. interest rate is 4 percent. Suppose that one-year forward rate is 1.215S/. a. What is the German interest rate that will satisfy the covered interest rate parity? b. Suppose that the actual one-year German interest rate is 2%. Assume that the interest rates for deposits and for borrowing are the same. Consider an arbitrage where you borrow in one currency, convert to another currency, save in deposits for one year, and convert back to the original currency. In particular, you can start with borrowing $1000 or borrowing 1000. What kind of transactions would you perform to get a profit? How much is your net profit after you pay back your debt of $1000 or 1000