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A foreign exchange trader can invest US$ 7 . 5 million, or the foreign currency equivalent in a covered interest arbitrage. Using the following quotes,

A foreign exchange trader can invest US$7.5 million, or the foreign currency equivalent in a covered interest arbitrage. Using the following quotes, should the trader engage in a covered interest arbitrage and if so, how much CIA profit would the trade generate? Round to the nearest dollar.
Arbitrage Funds available
$7,500,000
Spot exchange rate (NZ$/US$)
0.6315
180-day forward rate (NZ$/US$)
0.6355
180-day US dollar interest rate
2.0%
180-day New Zealand interest rate
3.4%

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