According to the recent boom of decentralized finance (DeFi), the growth of stablecoins has been skyrocketed as well. The current exchange of USD/USDT is 1 usd per usdt. Supposed that you can invest in a DeFi protocol to earn a return at 18% p.a. (net after DeFi insurance cost); while you can also borrow USDT at 24% p.a. (given 150% crypto-asset collateralization) On USD, supposed that you can borrow USD from a relationship bank at 5%, while the current deposit rate is now at 0.75%

a. What would be the appropriate 3M forward rate for USDT? b. Suppose you also strongly believe that the exchange rate of USD/USDT will remain pegged at 1 usd per usdt, what will be your trading strategy for this case?