You want to buy a special pug from China that can cure Coronavirus. There is a one-year wait list, and the price is fixed at RMB IMM. The current bid-ask spot rate is 67 RMB/USD, and the forward rate is 78RMB/USD. U.S. interest rates are 10%, and Chinese rates are 20%, for borrowing or lending. a) What is the least amount of USD you need today to buy a risk-free pug in one year. Explain specifically and show your work! Due to a trade war, you may not buy or sell Chinese currency directly for USD. You can only borrow and lend USD at 10%, and cannot borrow or lend foreign currency. But, you may use Japanese forward contracts. The one-year bid-ask forward exchange rates are 100-110 JPY/USD, and 16-17 JPY/RMB. b) How can you get a special pug risk-free? How many USD do you need today? Explain specifically and show your work