Assume you have the following information about the EURO and USD: The spot rate, $S_0=\frac{1\mathrm{.}0304}{1}$ USD, the US $ interest rate is $5\mathrm{.}84\%,$ the $lo{n}_{\text{i}\text{n}\text{t}\text{e}\text{r}\text{e}\text{s}\text{t}}$ rate is $3\mathrm{.}59\%,$ the time to expiration is $\frac{90}{365}=0\mathrm{.}2466.(3$ Marks$).$

a$.$ What is the forward rate between the EURO and USD?

a$.$ What is the forward rate between the EURO and USD?

b$.$ If the observed forward rate is $\frac{0\mathrm{.}9800}{1}$ USD, is there any arbitrage opportunity?

If yes, show the steps involved in this transaction.