Kurnick Co. expects that the pound will depreciate from $1.74 to $1.73 in one year. It has no money to invest, but it could borrow money to invest. A bank allows it to borrow either 1 million dollars or 1 million pounds for one year. It can borrow dollars at 7.0 percent or British pounds at 5.5 percent for one year. It can invest in a risk-free dollar deposit at 5.0 percent for one year or a risk-free British deposit at 4.5 percent for one year. Determine the expected profit or loss (in dollars) if Kurnick Co. pursues a strategy to capitalize on the expected depreciation of the pound. Do not round intermediate calculations. Round your answer to the nearest dollar. Enter your answer as a positive value.

Kurnick Co. borrows -Select-dollarspoundsItem 1 and invest in a risk-free -Select-dollarpoundItem 2 deposit to capitalize on the expected depreciation of the pound.

The expected -Select-profitlossItem 3 is $