The current exchange rate between AUD (Australian dollar) and USD is $0.78 per AUD. The risk free interest rates are 1% for USD and 3% for AUD (per year with continuous compounding). The price of a 1-year at-the-money European put option on AUD is $0.085. (1). What should be the price of a 1-year at-the-money European call option on AUD? (2). Suppose the call price is $0.10 instead. Construct an arbitrage strategy. Explain clearly what you should do at time 0 and in 1 year, and explain why it's an arbitrage strategy. Type your solution in the box provided or upload a file