Mary Joe has a credit line of $1,000,000 (or equivalent in major currencies) for arbitrage. She had access to the following rates, and she managed to generate CIA profits. Replicate her arbitrage and calculate her profits based on the following rates:

Assumptions	Value	SFr. Equivalent
Arbitrage funds available	$1,000,000	SFr. 1,281,000
Spot exchange rate (SFr./$)	1.2810
3-month forward rate (SFr./$)	1.2740
U.S. dollar 3-month interest rate	4.800%	pa
Swiss franc3-month interest rate	3.200%	pa

Note that interest rates are expressed in annualized terms!