John Hull is a foreign exchange trader. At a point in time, he noticed the following quotes. Spot exchange rate Six-month forward exchange rate Six-month US$ interest rate Six-month SG$ interest rate US$:SG$=1.4212 US$:SG$=1.4134 3.75% per year 3.25% per year (a) Ignoring transaction costs, was the interest rate parity holding? (2 marks) (b) Was there an arbitrage possibility? If yes, what steps would have been needed to make an arbitrage profit? Assuming that John Hull was authorized to work with US$1 million for this purpose, how much would the arbitrage profit have been in US dollars