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36 of 38 Marks Suppose one-year German Treasury bill pays 4.12% and one-year Canadian Treasury bill pays 2.33%. The current spot exchange rate is 1

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36 of 38 Marks Suppose one-year German Treasury bill pays 4.12% and one-year Canadian Treasury bill pays 2.33%. The current spot exchange rate is 1 Euro (EUR) = 1.3628 Canadian dollar (CAD) and the one-year forward exchange rate is 1 EUR = 1.353 CAD. How much arbitrage profit can an investor earn on an investment value of CAD 4 million? Answer: CAD (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES AND NO SEPARATOR FOR THOUSANDS.) Unsure

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