A spot exchange rate is BAS'I .0000=TERO.6976. The interest rate (per annum) in the country of the base currency (BAS) is 5%, and in the country of the terms currency (TER) is 3%, both continuously compounded. The forward rate quoted on a 3 month contract is BAS1 .0000=TERO.7046. You are an expert in foreign currency and you calculate that the correct forward rate on a 3 month contract should be BASi .0000=TER . Give your answer correct to four decimal places. Therefore, you conclude that the forward rate quoted is E- On a principal of TER1,000,000, you can make an arbitrage profit of TER Give your answer to the nearest whole number. Do not include commas in your