Given CHF 3,500,000 as your capital, calculate the possible profit from covered interest arbitrage. Explain specific steps that you must take to make a covered interest arbitrage.

CHF Fr = SwissFranc BND = Brunei Darul Salam

Spot rate	CHF0.7359/BND
270-day forward rate	CHF 0.7359/BND
9-month Brunei interest rate	5%
9-month swiss interest rate	4%

Step 1

1) Different i for Base rate -Quote rate =

2) Different between Spot and Forward =

(1) + (2) =

invest in _ borrow in _

Step 2 explain using table

2 Second step spot