Please sir i have 1.5 hr to answer

thanks for your swift response.

Currently, the spot exchange rate of the South African Rand (ZAR) is $0.055/ZAR and the threemonth forward exchange rate is $0.058/ZAR. The three-month interest rate is 8.5% per annum in the U.S. and 6.46\% per annum in South Africa. Assume that you can borrow as much as $1,500,000 or ZAR 27,272,727. a) Show your calculation to determine whether interest rate parity (IRP) is currently holding. (8 marks) b) If the IRP is not holding, how would you carry out covered interest arbitrage? Show all the steps and then determine the arbitrage profit. (12 marks)