You have the following market data.

• Spot price of the British pound is $1.5714.
• Underlying asset for the British pound futures contract is 62,500 pounds.
• 3-month British LIBOR rate is 0.56% per year, and the 3-month U.S. LIBOR rate is 0.25% per year. Both rates are continuously compounded.
• British pound futures contract that expires in 3 months has a futures price of $1.5670.

What is the general arbitrage strategy?

A.) Take a long position in the futures contract, buy pounds in the spot market, borrow at the U.S. risk-free rate to finance the purchase, and invest pounds at the British risk-free rate. B.) No arbitrage opportunity currently exists. C.) Take a long position in the futures contract, borrow pounds at the British risk-free rate, sell pounds in the spot market, and invest the sales proceeds at the U.S. risk-free rate. D.) Take a short position in the futures contract, buy pounds in the spot market, borrow at the U.S. risk-free rate to finance the purchase, and invest pounds at the British risk-free rate. E.) Take a short position in the futures contract, borrow pounds at the British risk-free rate, sell short pounds in the spot market, and invest the sales proceeds at the U.S. risk-free rate.