James Clark is a currency trader with Wachovia. He notices the following quotes: Spot exchange rate Six-month forward exchange rate Dollar interest rate Swiss franc interest rate SFr1.2064/$ SFr1.1935/$ 2.50% per year 2.00% per year a. Is the interest rate parity holding? You may ignore transaction costs. Yes No In the previous problem, is there an arbitrage opportunity? If so, state exactly how it should be conducted, assuming that $1,000,000 is available to execute the arbitrage.