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Given the following data for the dollar/Swiss franc exchange rate, show how covered interest arbitrage profits can be earned (starting with $1,000,000): Spot exchange rate:

Given the following data for the dollar/Swiss franc exchange rate, show how covered interest arbitrage profits can be earned (starting with $1,000,000):

Spot exchange rate: $0.7806/SF

3-month forward exchange rate: $0.7840/SF

3-month eurodollar rate: 4.800%

3-month euroSF rate: 3.200%

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