Assuming Japan to be the home country, suppose you have the following data: Japense interest rate = 1% p.a. Brazilian interest rate = 10% p.a. Spot rate = 0.025 BRL / Yen 1-year forward rate = 0.026 BRL / Yen Based on these data; a) Compute the annualizaed forward premium/discount on Yen b) Compute the annual interest rate differential between countries c) Is there a possibility for earning risk-free profit? If so, compute the profit if you have an equivalent of 100 million Yen at your disposal d) What is such profit called? e) At what forward rate, the profit making arrangement will lose its lucrativeness?