The practice of investing in a currency that offers the higher return on a covered basis is known as covered interest arbitrage. Currently, the six month Euro Libor rate is 0% per annum, and the six month TR libor rate is 18% per annum. If the spot rate is 21.4613 RRY ner Euro and the forward rates are as stated below, a) What is 6M Forward rate for euro? (use 4 digits and .(dot) as decimal separator) b) What is the annual interest difference? %. C) What is the forward premium? \%. (use 2 digits and .(dot) as decimal separator) d) Do you have a covered interest arbitrage opportunity? e) If yes, how can you have an arbitrage? Since forward premium is than interest difference, invest in and borrow