Suppose you are a speculator from France. You observe the following $1-$year interest rates, spot

exchange rates and forward prices. Forward contract sizes are $$10,000$ each.

Assume you did your own calculation of the forward price based on interest rate parity $($IRP$).$ It

shows that an arbitrage opportunity exists because the forward price that you calculated is: $F_{360}(\frac{}{\text{\$}})$

of $0\mathrm{.}6563=$$$1\mathrm{.}00.$

What actions will you take to make use of the arbitrage opportunity and what will your profit be$?$

a$.167\mathrm{.}89.$

b$.240\mathrm{.}24.$

C$.$ $$70\mathrm{.}29.$