Suppose Raha, a currency trader for UBS, finds the following quotes. Further, suppose that She has the equivalent of $10,000,000 funds to trade in the currency market.

	Bid		Ask			Borrowing		Lending
Spot $/	$1.2933/		$1.3000/		i$	3.857%		3.434%
Forward $/	$1.3300/		$1.3400/		i	5.652%		5.122%

1/ The arbitrage opportunity is profitable, fully explain what trades you will undertake to realize this profit. (Please explain each transaction, mentioning the bank you will be dealing with, the rates you will get, and the outcome of that transaction, making sure you indicate in which currency the outcome is in). You can borrow $10,000,00 or its equivalent.