QUESTION 2 a) Given are the several economic data related to the parity condition of Malaysia and Japan: Spot rate One year forward rate Annual interest (MYR) Annual interest (JPY) MYR3.6174/JPY100 MYR3.7500/JPY100 10.3 percent 7.3 percent i) Justify whether interest rate parity is at equilibrium or disequilibrium. (3 marks) ii) Compute the profit in Japanese Yen if an arbitrager initially borrows or invests MYR60million. (7 marks)