Assume your return on U.S. dollar bonds is K_$ = 5% and the current exchange rate is S(0) = $ 1.6 per pound. Assume your return on British sterling bonds is K_pound = 12%. Is it possible to find an arbitrage opportunity if the Forward price of stock is S(1) = $ 1.45 per pound with delivery date 1 year? If so, build the arbitrage portfolio at time 0 and show the complete financial transaction at time T