1. Suppose that the annual interest rate is 3 percent in the United States and 4 percent in Germany, and that the S(EUR/USD) = $1.60 and the forward exchange rate, with one-year maturity, is F₁₂(EUR/USD ) = $1.57. Assume that an arbitrager can borrow up to $10,000,000 or 6,250,000. If an astute trader finds an arbitrage opportunity, what is the net cash flow in one year? (Show each step and the values)