Assume the following information about exchange rates between the U.S. dollar ($) and British pound ():

Spot Exhange Rate:	$1.50/
60-day Forward Exchange Rate:	$1.47/
120-day Forward Exchange Rate:	$1.45/

Annualized Interest Rates	60-day	120-day
U.S.	4%	4.5%
U.K.	5%	5.6%

a) What is the no-arbitrage 120-forward price for the pound sterling?

b) Show how you could make an arbitrage profit over the 120-day [eropd based on the quoted price of the pound sterling