Assume that spot rate of New Zealand dollar is AUD 0.74/NZD, the 1-year forward rate of New Zealand dollar is AUD 0.70/N

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Assume that spot rate of New Zealand dollar is AUD 0.74/NZD, the
1-year forward rate of New Zealand dollar is AUD 0.70/NZD, 1-year
interest rate on NZD is 9% and 1-year interest rate on AUD is 6%.
If there is a possible arbitrage opportunity, the appropriate
arbitrage strategy should be _________ arbitrage; and the rate of
return from covered interest arbitrage would be _______%. Select
one: a. Inward; 2.80 b. Inward; 12.06 c. Outward; 2.80 d. Outward;
12.06