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suppose that the current spot exchange rate is 0.830/$ and the three month forward exchange rate is 0.815/$. the three month interest rate is 6.00

suppose that the current spot exchange rate is 0.830/$ and the three month forward exchange rate is 0.815/$. the three month interest rate is 6.00 percent per annum in the United States and 5.40 percent per annum in France . assume that you can borrow up to $1,000,000 or 830,000. show how to realize a certain profit via covered interest arbitrage, assuming that you want to realize profit in terms of U.S dollars. also determine the size of your arbitrage profit.

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