2. (8 points) The CFO of James Company (from question 1) next authorizes you to use another $100,000 in U.S. dollars for covered interest arbitrage with Australian dollars. You see that the one year interest rate in Australia is 5 percent and the one year U.S. interest rate is 8 percent. The spot rate of the Australian dollar is $.94. The forward rate of the Australian dollar is $.97. What profits, if any can you make using the $100,000 in U.S. dollars for covered interest arbitrage with Australian dollars?