the spot exchange rate between the United States and the United Kingdom is $1.29/. The continuously ded interest rate in the U.S. is 5%, while the continuously compounded British pound-denominated interest rate is ose you observe a 10 -month forward exchange rate of $1.53/f. What transactions could you undertake to make ith zero initial investment and no risk? b. Borrow U.S dollars, convert to British pounds, and invest in a British pound-denominated bill today, After 10 months, convert back to U.S. dollars at $1.53/ and pay off the loan. a4 Borrow U.S. dollars and invest in a U.S. dollar-denominated bill today. After 10 months, pay off the loan and convert the excess funds to British pounds at $1.53/E. b. Borrow U.S. dollars, convert to British pounds, and invest in a British pound-denominated bill today. After 10 months, convert back to U.S. dollars at $1.53/ and pay off the loan. C. Borrow British pounds, convert to U.S. dollars, and invest in a U.S. dollar-denominated bill today. After 10 months, convert back to British pounds at $1.53/ and pay off the loan. d. No arbitrage is possible under these conditions e. Borrow British pounds and invest in a British pound-denominated bill today. After 10 months, pay off the loan and convert the excess funds to U.S dollars at $1.53/E