James Clark is a foreign exchange trader with Citibank. He notices the following quotes Spot exchange rate Six-month forward exchange rate Six-month $ interest rate Six-month SFr interest rate SF 1.2051/$ SFr1.1922/$ 2.5% per year 2.0% per year a. Is the interest rate parity holding? You may ignore transaction costs. b. Is there an arbitrage opportunity? If yes, show what steps need to be taken to make arbitrage profit. Assuming that James Clark is authorized to work with $1,000,000, compute the arbitrage profit in dollars