A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one-year interest rate in the U.S, $$=2% and in the Euro Zone, the one-year interest rate i=6%. The spot exchange rate S($/) is 1.25 and the one-year forward exchange rate F1($/) is 1.20. In order to make a profit via covered interest arbitrage, an investor will need to 1. Borrow 6800,000 at 6% : Comert fonward rate; Net proft 62,400 .. 2. Borrow $1,000 $17,600 3. Borrow 6800,000 at 6%; Comer fonward rate; Net peoln 62,000 . Aerrow $1,000,000 at 2%. Trade $1