Question: 2a please 2. [15 points] Arbitrage Given the following market rates: 5.05% - 5.20% 3 months Rates 5.10% - 5.30% 6 months Rates For simplicity,

2a please

2. [15 points] Arbitrage Given the following market rates: 5.05% - 5.20% 3 months Rates 5.10% - 5.30% 6 months Rates For simplicity, assume the days to spot is 0 and the date count conventions are for 3 months and - for 6 months. 2 a. [5 points] Suppose a trader can buy an FRA 3v6 at a rate of rb. With the given market rates, what is the value of rb (percentage with 2 decimal points) below which the trader can execute an arbitrage?

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