Suppose the U.S. interest rate for the next year is 1.5 percent. The foreign interest rate is 2 percent. Both are in continuous compounding. The spot price of the foreign currency in dollars is $1.665. The one year forward price is $1.664. Which of the following statements is false based on the above information? The arbitrage profit is 0.7 cents per foreign currency. The arbitrage requires long position in foreign currency. The arbitrage requires short position in U.S. bonds. The arbitrage requires long position in foreign currency futures