The spot exchange rate is $1.6135/, the spot exchange rate is $1.2021/, and the / spot rate is 0.7380/. a) First show whether an arbitrage opportunity exists. (4 points) b) Second, if arbitrage profits are available, describe a strategy to exploit the arbitrage opportunity and calculate the arbitrage profits you would earn. Start by borrowing 1,000 units in one currency and show that at the end of your trades you have more than you borrowed. (8 points)