Currently, the spot exchange rate is $1.4925/ and the 6-month forward exchange rate is $1.4975/. The 6-month interest rate is 6% per annum in the U.S. and is 4.75% per annum in the U.K. Assume that you can borrow as much as $1,200,000 or 804,020. a. Determine whether interest rate parity (IRP) holds using the format $ = (1 + ) 1 b. If IRP is not holding, demonstrate how to carry out a covered interest arbitrage. Show all work and compute the profit in U.S. Dollars. c. Explain how the IRP will be restored as a result of covered interest arbitrage opportunities