A US investor sees an arbitrage opportunity in the currency markets. The spot exchange rate between the euro and US Dollar is 1.35 ($ per YEN). Assume the continuously compounded interest rates in the US and Japan is 4.50% and 6.50%, respectively. The 6-month currency forward price is 1.36 ($ per YEN) in the market exchange. Required: a) Considering USD as the domestic currency, what is the theoretically correct forward price? b) Should she/he buy or sell Yens at maturity? Why? c) Explain the strategy used by the US investor and calculate investors total profit (in USD), assuming she/he begins by borrowing 100,000 YEN?