I really need help....

Suppose the 6-month risk free spot rate in HKD is 1% continuously compounded, and the 6- month risk free rate in NZD is 3% continuously compounded. The current exchange rate is 5 HKD/NZD. (a) Suppose that there are transaction costs is spot and fonvard exchange rates. That is, to b uy NZD I you have to pay HKD 5.01 in the spot market today or HKD 5.03in the 6-month forward contract, and to sell NZD I you receive HKD 4.99 in the spot market today or H KD 4.97 in the 6-month forward contract. Is there an arbitrage? If yes, describe an arbitrage strategy. If no, briefly explain why not. (b) Consider the prices in (a) and further assume that your borrowing costs are 0.5% higher than the risk free rate, while the income from lending is equal to the risk freerate. That is, i f you borrow HKD for 6 months then you have to pay a 1.5% continuous compounded inter est rate, and similarly, if you borrow NZD for 6 months then you have to pay a 3.5% conti nuous compounded interest rate. Is there an arbitrage? If yes, describe an arbitrage strategy. I f no, briefly explain why not.