suppose that the current spot exchange rate is 0.8210/$ and the three-month forward exchange rate is 0.7895/$. The three-month interest rate in 6% per annum in the US and 8% per annum in france. Assume that you can borrow up to $1,000.000 or 821,000

a) there is no arbitrage

b) arbitrage can generate a net profit around $45,697

c) arbitrage can generate a net profit around 36,077

d) b and c