Question: Please answer correct explain plz asap plz Don't answer by pen paper plz Assume that annual interest rates are 4 percent in the United States

Please answer correct explain plz asap plz

Don't answer by pen paper plz

Assume that annual interest rates are 4 percent in the United States and 2.5 percent in Switzerland. You can borrow or lend at these rates. The spot rate is $1.3/Sf. a. If the forward rate is $1.6/Sf, is there an opportunity to earn any profit? What is the percentage earned? b. what should the interest rate be in the US to eliminate the arbitrage?

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