Suppose that the market has a forward contract on interest rates today. The spot values are listed as such:

Year (n)	n-year spot rate
1	.105
2	.11
3	.1
4	.095
5	.1

The forward contract offers a 1 year forward interest rate of .108 in two years from now. a) Is there an arbitrage? Why or why not? b) If there is arbitrage, would you buy or sell the forward contract? c) If there is arbitrage, show explicitly the arbitrage portfolio and the arbitrage amount.