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6. Assume the following information: Current spot rate of South African rand (ZAR) - $0.0673 90-day forward rate of the ZAR = $0.0668 90-day interest

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6. Assume the following information: Current spot rate of South African rand (ZAR) - $0.0673 90-day forward rate of the ZAR = $0.0668 90-day interest rate in the United States = 0.5% (i.e., not annualized) 90-day interest rate in South Africa = 3.0% (i.e., not annualized) If you conduct covered interest arbitrage, what is the profit in USD you will realize after 90 days if you borrow $1,000,000USD for 90 days at an interest rate of 0.5% (not annualized)

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