An EU arbitrageur wishes to exploit discrepancies between the rates for AUD and the EURO.

Current Spot Rate (dollars per euro)	$1.58
Current three-month forward rate (dollars per euro)	$1.34
Three-month interest rate for euros (annualized)	16%
Three-month interest rate for dollars (annualized)	2%

Using Covered Interest Arbitrage in order to obtain an EU profit, after borrowing cost, you will either borrow or invest 1,000,000 euro. Calculate the CIA euro profit per 1,000,000 euro. In the CIA, are you buying or selling euros forward? Is the euro at a forward premium or a forward discount? As what 3-month forward rate are CIA profits = 0 (using $/euro forward rate)?