You are given the following quotes: Spot exchange rate =$1.1075/ euro 9.month forward exchange rate =$1.2389/ euro a) Ignoring transaction costs, is the interest rate parity (IRP) holding? b) Is there an arbitrage opportunity? If yes, what steps would you take to make an arbitrage profit (certain)? Assuming that you are authorized to work with $10,000,000 (or its euro equivalent) for this purpose, how much would your arbitrage profit be in $ ? c) If you do not use a forward contract in this arbitrage opportunity, what transaction would you be engaged in? Briefly discuss the difference between these two. What will your break-even future spot exchange rate be for a 6-month period