The one$-$year interest rate in Germany is $6\mathrm{.}58\%$ and one$-$year interest rate in Canada is $3\mathrm{.}45\%.$ The spot exchange rate is CAD$1\mathrm{.}4706/$EUR$.$

a$.$ According to interest rate parity, what should the forward rate premium or discount $($in percentage$)$ of EUR be$?($Show calculations to support your answer to get full mark$)(2$ marks$)$

b$.$If the one$-$year forward exchange rate is CAD$1\mathrm{.}4540/$EUR$,$ describe how a Canadian investor could exploit the arbitrage opportunity and calculate the arbitrage profit in CAD on an investment amount of CAD $1$ million. $($Show calculations to support your answer to get full mark$)(4$ marks$).$