Please answer as soon as possible

1. You're a FX trader working in Japan. The following prices were observed in the market. Bid Ask Spot rate (Yen/USD) 77.7011 77.7201 1-year Forward rate (Yen/USD) 77.6554 77.6814 Yen interest rate % pa 0.15 0.19 USD interest rate % p.a. 298 3.02 1) Present the attempt to make an outward arbitrage transaction using the rectangular diagram (box diagram) below. Correctly indicate the arrow direction (clockwise/anti-clockwise), and show the required 4- step transactions (workings) for each arrow. You MUST choose the correct bid or ask price for each transaction. Please start with 1.000 unit of currency, and use 4 decimal points. (Note: Do not omit the currency symbols for exchange rate transaction. For every working, show the numbers with currency symbols.) (4 marks) Now, t T- 1 year Yen Yen USD USD 2) is an outward arbitrage transaction a profitable opportunity? (le, did you make a profit or loss with outward arbitrage?) (1 mark) 3) What is the rate of return that you can make from the arbitrage transaction? (1 mark)