Question 5 Suppose that the nine-month interest rates in United Kingdom and New Zealand are 1% and 3% per annum, respectively, with continuous compounding. The spot price of the New Zealand Dollar (NZD) is 0.4952 (i.e. 1 NZD = 0.4952 Pound). The forward price for a NZD contract deliverable in nine months is 0.4850. What arbitrage opportunities does this create? Provide detailed steps required to arbitrage and calculations of the profit at the end of 9 months if you were to initially buy or sell 100,000 Pounds. Assume you can borrow or lend at the interest rates quoted above