Question $1$ You are considering uncovered interest arbitrage between the pound $($GBP$)$ and the US dollar $($USD$).$ The following data is available to you: Funds available: $2$ million GBP Spot exchange rate: $1\mathrm{.}40$ USD per GBP Spot exchange rate one year ago: $1\mathrm{.}26$ USD per GBP USD $3$ month interest rate: $2\mathrm{.}32\%$ GBP $3$ month interest rate: $0\mathrm{.}75\%$ Required: a$)$ Calculate the profit that would be made if the exchange rate remains at its current level in $3$ months$$ time.