Please answer Question d. i and ii.

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d) Suppose that you are quoted the following NZD/FC spot and forward rates. Spot bid-ask 3-month forward bid-ask p.a. 3-month interest rate bid ask NZD 5.60-5.85 USD 0.578-0.582 0.581-0.585 3.60-3.80 CAD 0.596-0.602 0.597-0.600 1.70-1.90 REQUIRED: I. What are the three-month synthetic-forward NZD/USD and NZD/CAD bid-ask rates? (10 marks) II. Are there any arbitrage opportunities? If there are arbitrage opportunities, set up an arbitrage trading strategy and explain the cash flows from your trading strategy. (5 marks) d) Suppose that you are quoted the following NZD/FC spot and forward rates. Spot bid-ask 3-month forward bid-ask p.a. 3-month interest rate bid ask NZD 5.60-5.85 USD 0.578-0.582 0.581-0.585 3.60-3.80 CAD 0.596-0.602 0.597-0.600 1.70-1.90 REQUIRED: I. What are the three-month synthetic-forward NZD/USD and NZD/CAD bid-ask rates? (10 marks) II. Are there any arbitrage opportunities? If there are arbitrage opportunities, set up an arbitrage trading strategy and explain the cash flows from your trading strategy