Question 36 Not yet answered Marked out of 1.00 The next 2 questions are based on the following information: Consider the following prices in the international money markets Spot rate: USD1.13/GBP One-year Forward rate: USD 1.15/GBP Interest Rate (UK) 3% Interest Rate (US): 5% Assuming no transaction costs, which of the following statements is true? P Flag question O a An arbitrage can be obtained by borrowing in the currency that is expressing the other currency. O b. An arbitrage can be obtained by investing in the currency that is expressing the other currency Oc An arbitrage can be obtained by borrowing in the currency that is being expressed by the other currency Od An arbitrage can be obtained by investing in the currency that is being expressed by the other currency. More than one of these options is correct How large should transaction costs be to erode the arbitrage opportunity? Question 37 Not yet answered Marked out of 1.00 P Flag question O a. 0.084705% O b. 0.008471% O c 0.017401% O d. 0.017701% None of the options in this question are correct O e