step by step calculation pls

(b) You are given the following information: Spot exchange rate (AUD/EUR) 1.7100 One year forward rate (AUD/EUR) 1.7300 One year interest rate on AUD 8.5% p.a. One year interest rate on EUR 6.5% p.a. Using the information, answer the following: (1) Calculate the covered margin (going short on the AUD) [4 marks] (ii) Calculate the interest parity forward rate and compare it with actual forward rate. [1 mark] (iii) Calculate the forward spread and compare it with the interest differential. [1 mark] (iv) Develop a profitable strategy from an arbitrageur's perspective. [4 marks] (b) You are given the following information: Spot exchange rate (AUD/EUR) 1.7100 One year forward rate (AUD/EUR) 1.7300 One year interest rate on AUD 8.5% p.a. One year interest rate on EUR 6.5% p.a. Using the information, answer the following: (1) Calculate the covered margin (going short on the AUD) [4 marks] (ii) Calculate the interest parity forward rate and compare it with actual forward rate. [1 mark] (iii) Calculate the forward spread and compare it with the interest differential. [1 mark] (iv) Develop a profitable strategy from an arbitrageur's perspective. [4 marks]