(b) A Japanese manufacturer has an account receivable of USD 1 million due in 90 days. The spot and forward exchange rates are JPY/USD 110 and 109.8 respectively, and the simple interest rate for a three-month deposit is 2 percent p.a. in Japan and 3 percent p.a. in the US. If the manufacturer sells the USD 1 million forward for 90 days, how many JPY will she receive at time T? (ii) How could she replicate a forward sale in the spot and money markets? (iii) Is the manufacturer indifferent between (i) and (ii)? (iv) If the manufacture has a preference, is this an example of least cost dealing or arbitrage