A U.S.-based currency dealer has good credit and can borrow $2,000,000 for one year. The one-year interest rate in the U.S. is i $ = 2% and in the euro zone the one-year interest rate is i = 6%. The spot exchange rate is $1.25 = 1.00 and the one-year forward exchange rate is $1.20 = 1.00. Show how to realize a certain dollar profit via covered interest arbitrage.