Please help me solve this question.

(20pt) The risk-free 1-year term deposit rate in the US is 2% and the equivalent deposit in the UK carries 4% interest. The US Dollar is expected to neither appreciate nor depreciate against the British Pound (3 over the following year. Conrm that Uncovered Interest Rate Parity does not hold. Then, design a sequence of currency trades, deposits, or loans to exploit this arbitrage opportunity. Point out which steps in your strategy involve taking on risk and explain the nature of that risk