Assume the current $/euro exchange rate is 1.7 $/euro and the 1-year forward exchange rate is 1.68$/euro. The risk-free interest rates at which you can invest in the US and UK are 4% and 6% respectively. However, since you do not have a very good credit rating, you can borrow funds only at higher rates. Namely, you can borrow $ at 5% and you can borrow the euro at 7%. Is there an arbitrage opportunity? (Show reasons/ calculations to support your answer).