DETAILED CALCULATIONS PLEASE

4. Spot rate of pound $1.60 90-day forward rate $1.60 90-day US interest rate 90-day UK interest rate a. According to the interest rate parity, what 90-day forward rate of pound should be? 2% b. What is the net profit from the proper covered interest arbitrage, if you have $10,000 to invest? c. Which interest rate will go down after the covered interest arbitrage, given the CIA is feasible for home (U.S.) investors? d. Which one, forward rate or spot rate, will go down after the covered interest arbitrage, given the CIA is feasible for home (U.S.) investors? $1.60 5. Spot rate of pound 90-day forward rate $1.5385 90-day US interest rate 2% 4% 90-day UK interest rate a. According to the interest rate parity, what 90-day forward rate of pound should be? b. What is the net profit from the proper covered interest arbitrage, if you have 10,000 ($ or pound) to invest? C. Which interest rate will go up after the covered interest arbitrage, given the CIA is feasible for foreign investors? d. Which one, forward rate or spot rate, will go up after the covered interest arbitrage, given the CIA is feasible for foreign investors