You are an investor with access to 1,000,000.00 or its equivalent amount in U.S.$. You want to conduct an investment. You are provided with the following quotations from a bank:

	Exchange rate	Interest rate
Spot rate (/$	0.7000 = $1.00	= 4.15% per annum
F360(/$)	0.7010 = $1.00	$ = 4.7% per annum

Determine whether an arbitrage opportunity exists for a one year investment and show the following in the space provided below if the arbitrage opportunity exists:

Currency to be borrowed (specify $ or ):

Amount to be borrowed:

Currency to be invested in (specify $ or ):

Amount to be invested: