Q1: The following is information on interest-rates and exchange rates for Australia and the U.K. being quoted by ANZ bank (assume there are no bid-ask spreads, for simplicity). The spot exchange rate for the number of AUD (Australian dollars) per GBP (British pound) is 1.8000. The annualized 6 month interest-rate in Australia (respectively, the U.K.) is 10\% (respectively, 8%). Using the formula given in class, what is the 6 month forward exchange rate (consistent with no arbitrage) expressed as the number of AUD per GBP? Assume 6 months is exactly 0.5 years. Give your answer to 4 decimal places. Q2: This follows on from Q1. You work as a trader at a hedge fund. You see the rates being quoted as in Q1. An Australian bank, CBA, is also quoting the 6 month forward exchange rate expressed as the number of AUD per GBP as 1.8200 (bid) - 1.8210 (ask). Suppose that you are authorized to use 2 mio AUD (2,000,000 AUD) as risk capital. How many AUD could you make in arbitrage profit? Give your answer to the nearest AUD