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Suppose one-year German Treasury bill pays 4.16% and one-year Canadian Treasury bill pays 2.47%. The current spot exchange rate is 1 Euro (EUR) = 1.3573

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Suppose one-year German Treasury bill pays 4.16% and one-year Canadian Treasury bill pays 2.47%. The current spot exchange rate is 1 Euro (EUR) = 1.3573 Canadian dollar (CAD) and the one-year forward exchange rate is 1 EUR = 1.3439 CAD. How much arbitrage profit can an investor earn on an investment value of CAD 3 million? Answer: CAD (DO NOT ROUND YOUR CALCULATIONS UNTIL YOU REACH THE FINAL ANSWER. ENTER YOUR RESPONSE ROUNDED TO TWO DECIMAL PLACES AND NO SEPARATOR FOR THOUSANDS.)

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