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Assume the following information: Current spot rate of Nigerian naira (NGN) = $0.0024 180-day forward rate of the NGN = $0.0024 180-day interest rate in

Assume the following information:

Current spot rate of Nigerian naira (NGN) = $0.0024

180-day forward rate of the NGN = $0.0024

180-day interest rate in the United States = 0.5% (not annualized)

180-day interest rate in Nigeria = 4.0% (not annualized)

If you conduct covered interest arbitrage, what is the profit in USD you will realize after 180 days if you borrow $1,000,000 for 180 days at an interest rate of 0.5% (not annualized)?

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