On checking the Telerate screen, you see the following exchange rate and interest rate quotes:

U.S. Dollar 90-Day Interest Rates (Annualized) 4.99% – 5.03%

Swiss franc 90-Day Interest Rates (Annualized) 3.14% – 3.19%

Spot Rates $0.711-22

90-Day Forward Rates $0.726-32

a. Can you find an arbitrage opportunity?

b. What steps must you take to capitalize on it?

c. What is the profit per $1 million arbitraged?