The 1yr US interest rate is 3.5%. and the 1yr euro rate is 0.50%. The spot EURUSD rate is 1.15 and the 1YR FWD EURUSD rate is 1.18. Is there an arbitrage opporunity in this market? Assume you can borrow or lend 1MM in either currency

A) Yes, BRW / SS / INV $ / SF $ >> Profit = 3,686.44

B) Yes, BRW $, SS $ / INV / SF >> Profit = $3,782.60

C) No. Markets are in equilibrium

D) No, All alternatives result in a loss