Quotes for the U.S. dollar and Thai baht are as follows:

Spot contract midpoint 1-year forward contract midpoint 1-year Eurodollar interest rate

a. Your newspaper does not quote 1-year Eurocurrency interest rates on Thai baht. Make your own estimate of .

b. Suppose that you can trade at and that you also can either borrow or lend at a Thai Eurocurrency interest rate of percent per year. Based on a $1 million initial amount, how much profit can you generate through covered interest arbitrage?