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Use the information below to answer the following question. (10 points) 1) If you borrowed 1,000,000 for one year, how much money would you owe

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Use the information below to answer the following question. (10 points) 1) If you borrowed 1,000,000 for one year, how much money would you owe at maturity? If you borrowed $1,000,000 for one year, how much money would you owe at maturity? 2) Compute one-year forward exchange rate (i.e., F360(\$/E)) by using interest rate parity. 3) Do you think whether there is an arbitrage opportunity. If yes, propose the trading strategy and compute the arbitrage profits. Edit View Insert

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