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James Clark is a foreign exchange trader with Citibank. He notices the following quotes. __________________________________________________________________________________________________ Spot exchange rate USD1.2051/SFr Six-month forward exchange rate USD1.1922/SFr Six-month

James Clark is a foreign exchange trader with Citibank. He notices the following quotes. __________________________________________________________________________________________________

Spot exchange rate USD1.2051/SFr

Six-month forward exchange rate USD1.1922/SFr

Six-month $ interest rate 8% per year

Six-month SFr interest rate 10% per year

___________________________________________________________________________________________________

Is there an arbitrage opportunity? If yes, determine the arbitrage profit in Swiss Francs. Assume that James Clark is authorized to work with $1,000,000. Input your answer without any currency information.

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