Suppose that the current spot exchange rate is 0.8210/$ and the threemonth forward exchange rate is 0.7895/$. The three-month interest rate is 6 percent per annum in the United States and 8 percent per annum in France. Assume that you can borrow up to $1,000,000 or 821,000. Arbitrage can generate a net profit around $45,697. Arbitrage can generate a net profit around 36,077. Both B) and C). There is no arbitrage opportunity