Q$2$: You work for a hedge fund and your job is to profit from possible arbitrages. You have the following information today from a large international bank active in the financial markets. The spot exchange rate for the number of South African Rand $($SAR$)$ per British pound $($GBP$)$ is $25\mathrm{.}202--25\mathrm{.}382($bid$-$ask$).$ The South African LIBOR interest$-$rate applicable from today to $6$ months from now is $\backslash (9\mathrm{.}70\backslash \%-9\mathrm{.}90\backslash \%\backslash )$ per annum $($this is the bid$-$ask so$,$ for example, $\backslash (9\mathrm{.}70\backslash \%\backslash )$ is the rate at which SAR can be deposited at the bank$).$ The British LIBOR interest$-$rate applicable from today to $6$ months from now is $3\mathrm{.}15\backslash \%-3\mathrm{.}27\backslash \%$ per annum. The six month forward exchange rate for the number of SAR per GBP is $\backslash (25\mathrm{.}666--25\mathrm{.}864\backslash )($this is the bid$-$ask$).$ Is there an arbitrage? If you are allowed by your boss at the hedge fund to borrow $44$ mio GBP $($this is the risk capital and you have to treat this as a loan and repay this risk capital with interest $--$ mio means million$),$ how much arbitrage profit $($i$.$e$.,$ guaranteed risk$-$free profit$)$ can you make? Give your answer in GBP to the nearest GBP$.$ Assume six months is exactly $0\mathrm{.}5$ years. If there is no arbitrage, enter zero. Hint: Do not round until the end or $($even better$)$ do your calculation in Excel.