You are a hedge fund looking for arbitrage opportunities between the spot FX market and 2 month FX forwards and money markets. You observe the following quotes from market makers in these markets for EUR and USD: Bide Aske S (USD/EUR) 1. 1022 1. 1040 F (USD/EUR) 1. 09854 1.09964 2m Lending Rate 2m Borrowing Ratee EUR 0.44%pa 0.63%pae USD 0.25%pa- 0.34%pa At these prices: Group of answer choices ) You can make an arbitrage profit and the arbitrage trade involves you lending USD in the money markets. You cannot make an arbitrage profit due to transaction costs. I You can make an arbitrage profit and the arbitrage trade involves you lending EUR in the money markets. None of the other answers. You can make an arbitrage profit and the arbitrage trade involves you borrowing USD in the money markets