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Currently, the USD/MXN rate is 19.1100 and the three-month forward exchange rate is 20.4300. The three-month interest rate is 3.8% per annum in the U.S.

Currently, the USD/MXN rate is 19.1100 and the three-month forward exchange rate is 20.4300. The three-month interest rate is 3.8% per annum in the U.S. and 7% per annum in Mexico. Assume that you can borrow MXP10,000,000 or its equivalent in USD. How much do you make/lose if you borrow the foreign currency and invest locally? (USD, no cents)

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