James Clark is a currency trader with Wachovia. He notices the following quotes: Spot exchange rateSFr1.2062 per $Six-month forward exchange rateSFr1.1933 per $Six-month Dollar interest rate2.5% per yearSix-month Swiss franc interest rate2.0% per year Required: Is the interest rate parity holding? You may ignore transaction costs. What steps should be taken to make arbitrage profit? Assuming that James Clark is authorized to work with $1,000,000. Compute the arbitrage profit.