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Assume the following information: Current spot rate of Australian dollar (AUD): USD 0.620 / AUD 180-day forward rate of the AUD: USD 0.640 / AUD

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Assume the following information: Current spot rate of Australian dollar (AUD): USD 0.620 / AUD 180-day forward rate of the AUD: USD 0.640 / AUD 180-day interest rate in the US: 3.50 percent 180-day interest rate in Australia: 3.00 percent If you conduct covered interest arbitrage, what is the USD profit you will have realized after 180 days if you use USD 900,000

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