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c) The current spot exchange rate is RM3.4118/USD, while the 6-month forward rate is RM3.4145/USD. If the 6-month interest rate in Malaysia and US

c) The current spot exchange rate is RM3.4118/USD, while the 6-month forward rate is RM3.4145/USD. If the 6-month interest rate in Malaysia and US is 3.75% and 2.85% respectively, can a currency arbitrager profit from covered interest opportunity? How much would the profit be (in RM) if the arbitrager initially invest or borrow USD2 million? (10 marks)

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