For a company there is an opportunity to earn arbitrage profit. Consider the following data and find out the profit amount. Arbitrage funds available $5,000,000 Spot rate kr 6.1720 = $1 3 months forward rate kr 6.198 = $1 US dollar 3 months interest rate =39 Danish Kroner (Kr) 3 months interest rate= 696 a) First identify whether arbitrage profit can be earned or not? If yes then what's the rule. (5 marks) b) Explain the steps that how arbitrage profit can be made and how much will be the profit on $5,000,000 (20 marks) c) How much profit will be made if available funds will be $7,000,000