The current exchange rate is $1\mathrm{.}19$ Euro per one British pound. The one$$year Euro and Pound interest rates are $-1\%$ and $1\%$ respectively. True$/$False or Ambiguous:

An arbitrage exists if the one$-$year forward rate is $1\mathrm{.}21$ Euros per one British pound.

Let C and P denote the prices of one year put and call options on the pound with a

strike of $1\mathrm{.}21$ Euros respectively. An arbitrage exists if C $=$ P$.$