Heidi Hi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates

Question:

Heidi Høi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. (Note that any time the difference in interest rates does not exactly equal the forward premium, it must be possible to make a CIA profit one way or another.)

Arbitrage funds available.....................$5,000,000

Spot exchange rate (kr/$)...........................6.1720

3-month forward rate (kr/$)........................6.1980

U.S. dollar 3-month interest rate.................4.000%

Danish kroner 3-month interest rate.............5.000%

Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...