Assume the following information:

Quoted Price

Spot rate of Chinese yuan

$$0\mathrm{.}1981$

$90$ day forward rate of Chinese yuan

$$0\mathrm{.}2052$

Chinese yuan deposit rate

$2\mathrm{.}5\%$

US dollar deposit rate

$3\mathrm{.}5\%$

Given this information, what would be the profit$/$loss to an investor in the U$.$S$.$ who used covered interest arbitrage? $($Assume the investor invests $$1$ million.$)$

b$)$ What market forces would occur to eliminate any further possibilities of covered interest arbitrage?