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Heidi Hi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. What would be the profit (in Danish

Heidi Hi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. What would be the profit (in Danish Kroner)? (Note that anytime the difference in interest rates does not exactly equal the forward premium, it must be possible to make CIA profit one way or another.) Assumptions Value Arbitrage funds available $5,000,000 Spot exchange rate (kr/$) 6.157 3-month forward rate (kr/$) 6.1980 US dollar 3-month interest rate 4.000% Danish kroner 3-month interest rate 5.000%

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