Question: d. [4 marks] Suppose that the forward rate for a forward contract on 180day bank bills, to be delivered at the end of 90 days,

d. [4 marks] Suppose that the forward rate for a forward contract on 180day bank bills, to be delivered at the end of 90 days, with face value of $200,000, is 3% p.a. (simple interest rate). List and explain all the steps that Sarah needs to undertake in order to make an arbitrage prot from this forward contract. Make sure you outline all that needs to happen on all relevant dates, as well as today. Round your answer to three decimal places

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