From an investor’s perspective, the one- year borrowing and lending rates for GBP are 4 percent and 3 percent, respectively. In contrast, the one- year borrowing and lending rates for JPY are 1.5 percent and 0.75 percent, respectively. The spot rate is GBPJPY = 160, and the one-year forward rate is GBPJPY = 158. Assume an arbitrageur tries to use CIA, which of these strategies is profitable? Borrow JPY, Invest in GBP and use Fwd to cancel risk Borrow GBP, invest in JPY and use Fwd to cancel risk Both strategies make money No way to make money.