d. Suppose that the current spot exchange rate is FF6.25/$ and the three-month forward exchange rate is FF6.28/$. The three-month interest rate is 5.6% per annum in the U.S. and 8.8% per annum in France. Assume that you can borrow up to $1,000,000 or FF 6,250,000. i. Show how to realize a certain profit via covered interest arbitrage, assuming that you want to realize profit in terms of U.S. dollars. Also determine the magnitude of arbitrage profit. 4 marks ii. Assume that you want to realize profit in terms of French francs. Show the covered arbitrage process and determine the arbitrage profit in French francs. 4 marks