Assume that annual interest rates are 8 percent in the United States and 4 percent in Japan. An FI can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is $0.0080A4 a. If the forward rate is $0.0085/A4, how could the FI arbitrage using a sum of $1 million? What is the expected return? b. What forward rate will prevent an arbitrage opportunity? Assume that annual interest rates are 8 percent in the United States and 4 percent in Japan. An FI can borrow (by issuing CDs) or lend (by purchasing CDs) at these rates. The spot rate is $0.0080A4 a. If the forward rate is $0.0085/A4, how could the FI arbitrage using a sum of $1 million? What is the expected return? b. What forward rate will prevent an arbitrage opportunity