Investment Analysis Part A Tim & Co is building a new factory in Yorkshire, England. They must pay a final construction payment of 9,000,000 in six months' time. Foreign exchange and interest rate quotations are as follows: You can trade at the following prices: Spot rate, euro per 1.4876/ British pound sterling One year forward 1.4906/ exchange rate One-year euro interest 4.10 % rate One year pounds' sterling 3.55% interest rate Required: Prepare a portfolio of evidence that addresses the following que ions. 1. Is covered interest arbitrage worthwhile? If so, explain the steps and compute the profit based on an initial transaction of 9,000,000. Briefly discuss your findings. (5.1, 5.2, 5.3) 2. Identify laws and regulations controlling the financial services industry. (5.1, 5.2, 5.3) 3. Assess the principles of direct and indirect taxation and review the implications on a range of business stakeholders. (4.1, 4.2, 4.3) 4. Evaluate the key characteristics of different types of securities and assess the strengths and weaknesses of the securities. (1.1, 1.2)