You notice that the 9-month risk free interest rates in the UK is 4% per annum with continuous compounding and the US rate is 7% per annum, with continuous compounding. The spot price of the Pound Sterling is $0.2500. Assume the US is your home country. Answer the following: i. What is the no-arbitrage price of the 9-month futures contract? (4 points) ii. You observe that the 9-month futures price in the market is $0.2775. State why an arbitrage opportunity exists and explain how you would take advantage of this arbitrage opportunity. (10 points)