Assume the following prices: Bid Ask So 1.42 $/ 1.45 $/ F360 1.48 S/ 1.50 $/ Borrowing Lending lis 4.25% 4% 3.10% 3% 1. The interest rates are quoted on a 360-day year. Determine whether covered interest arbitrage is feasible. 2. If a trader can borrow either 1,000,000 or 51,000,000, explain the specific steps this trader must take 10 make a covered interest arbitrage and calculate the profit. 3. To offset the existing arbitrage opportunity. In what directions de spot and forward rate move? Increase or decrease) explain. Assume the following prices: Bid Ask So 1.42 $/ 1.45 $/ F360 1.48 S/ 1.50 $/ Borrowing Lending lis 4.25% 4% 3.10% 3% 1. The interest rates are quoted on a 360-day year. Determine whether covered interest arbitrage is feasible. 2. If a trader can borrow either 1,000,000 or 51,000,000, explain the specific steps this trader must take 10 make a covered interest arbitrage and calculate the profit. 3. To offset the existing arbitrage opportunity. In what directions de spot and forward rate move? Increase or decrease) explain