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Suppose that the current spot exchange rate is 0.80/$ and the three-month forward exchange rate is 0.90/$. The three-month interest rate is 5.00% per annum

Suppose that the current spot exchange rate is 0.80/$ and the three-month forward exchange rate is 0.90/$. The three-month interest rate is 5.00% per annum in the United States and 8.00% per annum in France. Assume that you can borrow up to $1,000 or 800. Show how and how much can you realize a certain profit via covered interest arbitrage

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