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 3.0% 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 USDGBP. 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 "0") 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)