4. Suppose that the treasurer of IBM has an extra cash reserve of 5100,000,000 to invest for aix monthy, he. intered rate is 8 percent per aninum in the United States and 7 percent per annum in Germany. Curterthy, the spot exchange rate is 61.11 per dollar and the six-month forward exchange rate is 61.09 per dolliar. hhe the retern? (4 Marks) 5. Suppose that the annual interest rate is 2.0 percent in the United States and 4 percent in Germany, and that the spot exchange rate is $1.60/6 and the forward exchange rate, with one-year maturity, is $1.58/6. Assume that an arbitrager can borrow up to $1,000,000 or 6625,000 . If an astute trader finds an arbiltage opportunity, what is the net cash flow in one year? Explain how the IRP will be restored as a resilt of covered arbitrage activities (9 Marks)