a) Given the tong exchange rates: 1/$1.1837 1/0.7231 1/$1.6388 fllustrate how a trader with $11,837 will make a loss from theses quotations. (15 marks) site -$ b) Given: Spot rate $1/Kes80 3 month forward rate $1/Kes. 80.56 Annual interest rate is 18% in Kenya and 12% in USA. Illustrate steps in covered interest arbitrage (CIA) and the arbitrage profit theorem. (10 marks) [Total: 25 marks]