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Assumptions Value Spot exchange rate (kr/$) 6.1800 3-month forward rate (kr/$) 6.1980 US dollar interest rate 3.0%, p.a. Danish kroner interest rate 5.0%, p.a. You,

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Assumptions Value Spot exchange rate (kr/$) 6.1800 3-month forward rate (kr/$) 6.1980 US dollar interest rate 3.0%, p.a. Danish kroner interest rate 5.0%, p.a. You, a foreign exchange trader in New York, can invest $1 million or the foreign currency equivalent. What is the estimated arbitrage profit in terms of US dollar, if any? -$909.54 O-$2,059.54 $2,059.54 $909.54

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