need arbirtrage profit for both

a. How will you realize a certain profit via covered interest arbitrage, assuming that you want to realize profit in terms of U.S. dollars? What will be the size of your arbitrage profit? b. Assume that you want to realize profit in terms of euros. Show the covered arbitrage process and determine the arbitrage profit in euros. How will you realize a certain profit and size of your arbitrage profit? Answer is not complete. Complete this question by entering your answers in the tabs below. How will you realize a certain profit via covered interest arbitrage, assuming that you want to realize dollars? What will be the size of your arbitrage profit? Note: Do not round intermediate calculations. Round off the final answer to nearest whole dollar. Suppose that the current spot exchange rate is 0.84 per $ and the three-month forward exchange rate is 0.8213 per $. The three-month interest rate is 5.60 percent per annum in the United States and 5.40 percent per annum in France. Assume that you can borrow up to $1,000,000 or 840,000. Required: a. How will you realize a certain profit via covered interest arbitrage, assuming that you want to realize profit in terms of U.S. dollars? What will be the size of your arbitrage profit? b. Assume that you want to realize profit in terms of euros. Show the covered arbitrage process and determine the arbitrage profit in euros. How will you realize a certain profit and size of your arbitrage profit? realize profit in terms of U.S. dollars? What will be the size of your arbitrage profit? b. Assume that you want to realize profit in terms of euros. Show the covered arbitrage process and determine the arbitrage profit in euros. How will you realize a certain profit and size of your arbitrage profit? \& Answer is not complete. Complete this question by entering your answers in the tabs below. Assume that you want to realize profit in terms of euros. Show the covered arbitrage process and de profit in euros. How will you realize a certain profit and size of your arbitrage profit? Note: Do not round intermediate calculations. Round off the final answer to nearest whole dollar. \begin{tabular}{|l|l|l|} \hline \begin{tabular}{l} How will you realize a certain \\ profit? \end{tabular} & \begin{tabular}{l} Borrow in dollars and invest in euros. Hedge exchange rate risk by selling jus \\ enough euros forward to repay your dollar loan. \end{tabular} \\ \hline Arbitrage profit & \\ \hline \end{tabular}