You are an investor in the US. The current spot exchange rate is 1.500 USD/GBP. The annual risk-free interest rate is 5.0% in the U.S. and 4.0% in the UK. a) What is the no arbitrage one year forward exchange rate? The forward exchange rate is JUSD/GBP. (round to 3 decimals) b) Suppose that you observe that one year forward exchange rate is 1.600 USD/GBP. Does Interest Rate Parity hold? ) (fill in "yes" or "no") c) Assume that you can borrow $1,500,000 or 1,000,000. Make an arbitrage strategy, determine the arbitrage profit (if any, otherwise type "O") and report it in USD. The arbitrage strategy is to ) (fill in "buy" or "sell") a one year forward on British pounds, and the arbitrage profit is ) USD. (round to integer USD)