Suppose you observe the following exchange rates: S$($$$/)=1\mathrm{.}3.$ The one$-$year forward rate is F$1($$$/)=1\mathrm{.}32.$ The risk$-$free interest rate in the U$.$S$.$ is $5\%$ and in UK it is $2\%.$ You can borrow either $$1,300,000$ or $1,000,000.$

Briefly and clearly explain your arbitrage strategy. Show your work in each step to receive partial credits.