$$Statoil$\text{'}$s Arbitrage. $$ Statoil, the national oil company of$$ Norway, is a$$ large, sophisticated, and active participant in both the currency and petrochemical markets. Although it is a Norwegian$$ company, because it operates within the global oil$$ market, it considers the U$.$S$.$ dollar, rather than the Norwegian$$ krone, as its functional currency. Ari Karlsen is a currency trader for$$ Statoil, and has immediate use of either $$$$3\mathrm{.}053\mathrm{.}05$ million$($or the Norwegian krone$$ equivalent$).$ He is faced with the following market rates and wonders whether he can make some arbitrage profits in the coming $90$ days.

Abitrage funds available

$

$3,050,000$

Spot exchange rate $($Nok$/$$$)$

$6\mathrm{.}0312$

$3-$month forward rate $($Nok$/$$$)$

$6\mathrm{.}0188$

U$.$S$.$ dollar annual interest rate

$4\mathrm{.}996$

$\%$

Norwegian krone annual interest rate

$4\mathrm{.}447$

$\%$