Simon Investment Co. is a Palestinian firm that executes a carry trade in which it borrows British pounds and invests in Japanese Yen.

Simon uses NIS 500,000 of its own funds and borrows an additional 700,000 Pounds and convert to Japanese Yen.

It will pay 0.9% interest on Pounds borrowed for the next 37 days and will earn 1.9 % on funds invested in Japanese Yen. Assume that the Pounds spot rate is 1.3 NIS and that the Japanese Yen spot rate is NIS 5.

Simon uses todays spot rate as its best guess of the spot rate 37 days from now.

Calculate Simons expected profits from its carry trade.