Question: Question 23 9 points Save A Assume the current S/E exchange rate is 1.7$/L and 1 year forward exchange rate is 1.685/E. The risk free

Question 23 9 points Save A Assume the current S/E exchange rate is 1.7$/L and 1 year forward exchange rate is 1.685/E. The risk free interest rates at which you can invest in US and UK are 49 and 6% respectively. However, since you do not have a very good credit rating, you can borrow funds only at higher rates. Namely, you can borrows at 54 and you can borrow at 7%. Is there an arbitrage opportunity? (Show reasons/calculations to support your answer)

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