Suppose that the one-year interest rate is 4.65 percent in the United States and 2.72 percent in Germany, and that the spot exchange rate is $1.1073/ and the one-year forward exchange rate, is $1.271/. Assume that an arbitrageur can borrow up to $1,000,000. Calculate his arbitrage profit. If there is no arbitrage opportunities enter zero as your answer.

Answer Format: Keep two decimals. Include the currency unit. For example: 1.12($); 1.12( ).