Currently, the spot exchange rate is $$0\mathrm{.}85/$A$ and the one$-$year forward exchange rate is $$0\mathrm{.}81/$A$$.$ One$-$year interest is $3\mathrm{.}5\%$ in the United States and $5\%$ in Australia. You may borrow up to $$1,000,000$ or A$$1,176,471,$ which is equivalent to $$1,000,000$ at the current spot rate.

a$)$ Determine if IRP is holding between Australia and the United States.

b$)$ If IRP is not holding, explain in detail how you would realize certain profit in U$.$S$.$ dollar terms.