Assume that annual interest rates are 7 percent in the United States and 6 percent in Turkey. An FI can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is $0.6610/Turkish lira (TL).

If the forward rate is $0.6735/TL, how could the bank arbitrage using a sum of $8 million? What is the spread earned?(Do not round intermediate calculations. Round your answer to 4 decimal places. (e.g., 32.1616))

At what forward rate is this arbitrage eliminated?(Do not round intermediate calculations. Round your answer to 4decimal places. (e.g., 32.1616))