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Given the following information, find the JPY profits you can make using covered interest arbitrage. Assume you can borrow either EUR 100,000 or JPY 14,603,000.

Given the following information, find the JPY profits you can make using covered interest arbitrage. Assume you can borrow either EUR 100,000 or JPY 14,603,000.

EUR interest rate = 4% per year

JPY interest rate = 0.5938% per year

S (JPY/EUR) = JPY 146.03 per EUR

F (JPY/EUR) = JPY 141.9021 per EUR for 1 year maturity

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