Alex De Minaur arbitrages the FX market from his home office in Sydney, Australia. Today, July 10, 2021, he is focusing on the Australian Dollar (AUD) / British Pound (BP) pair. He sees a forward quote of 1.05 AUD per BP for a 3-month maturity. He checks the continuously compounded interest rates in the respective countries and sees that they are at 0.25% per annum in Australia and at 0.15% per annum in the UK. Ignoring transactions costs, is there an arbitrage opportunity for Alex if the spot FX rate is 1.0404 AUD per BP? If so, what is De Minaur's total riskless profit if he decides to undertake the arbitrage strategy by borrowing 1,000 units in the relevant currency? Yes, with a riskless profit of AUD 8.98 on July 10 Yes, with a riskless profit of BP 8.98 on October 10 No, there is no arbitrage opportunity Yes, with a riskless profit of AUD 8.98 on October 10 Yes, with a riskless profit of BP 9.34 on July 10