Problem Solving: 10 marks. Consider the following information and trading strategy: It is widely expected that the revenue of company XYZ will start to increase in 1-year's time. Given this, your friend, Mr. Arbitrage, suggests the following investment strategy to you: Use your initial wealth of $10,000 USD to take advantage of higher UK interest rates. Specifically, the interest rate for a 1-year time-deposit in the UK is 7.5% (compared with 5% in the US). The current exchange rate is 1.25 USD per 1 GBP. Mr. Arbitrage suggests that in one-year's time, after collecting the higher interest income in the UK, you convert the GBP back to USD and buy XYZ stock. He claims the timing is perfect: you will be buying more XYZ stock at the time when the company's revenue is just taking off! In 1-2 paragraphs, explain while clearly showing any calculations and assumptions if you agree or disagree with Mr. Arbitrage's advice