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Currently, the spot exchange rate is $0.75/A$ and the one-year forward exchange rate is $0.70/A$. One-year interest is 3.5% in the United States and 4.2%

Currently, the spot exchange rate is $0.75/A$ and the one-year forward exchange rate is $0.70/A$. One-year interest is 3.5% in the United States and 4.2% in Australia. You may borrow up to $1,000,000 or A$1,333,333, which is equivalent to $1,000,000 at the current spot rate. Explain in detail how you would realize certain profit in US dollar terms.

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