James Clark is a currency trader with Wachovia. He notices the following quotes:

Spot exchange rate SFr$1\mathrm{.}2061$ per $

Six$-$month forward exchange rate SFr$1\mathrm{.}1932$ per $

Six$-$month Dollar interest rate $2\mathrm{.}5\%$ per year

Six$-$month Swiss franc interest rate $2\mathrm{.}0\%$ per year

Required:

What steps should be taken to make arbitrage profit? Assuming that James Clark is authorized to work with $$1,000,000.$ Compute the arbitrage profit.