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4 pts Towe contato D Question 9 Suppose that the annual interest rate is1.5 percent in the United States and 3 percent in Germany, and

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4 pts Towe contato D Question 9 Suppose that the annual interest rate is1.5 percent in the United States and 3 percent in Germany, and that the spot exchange rate is $1.57/ and the forward exchange rate, with one-year maturity, is $1.58/. Assume that an arbitrager can borrow up to $1,000,000 or 625,000. If an astute trader finds an arbitrage, what is the arbitrage profit in one year? 13,390 10,262 $46,207 $21,561

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