Question 11 Determine the profit of a covered interest arbitrage trading with the following information: You need $ 1,200,000 to pay back a loan (plus interest) 3 months later The money you have 3 months later to pay back the loan is 1,000,000 The spot rate = $ 1.27 The 3-month forward rate = $ 1.25/ $ 40,000 $ 20,000 $ 0 $ 50,000