Suppose the six-month interest rate is 4% per annum in the United States and 3% per annum in Germany.

Currently, the spot exchange rate is $1.35/ (0.7407/$) and the six-month forward exchange rate is $1.36/ (0.7353/$).

How much profit could you make if you can start with $1,350,000 or 1,000,000?

a. $16,825

b. $3,400

c. $3,200

d. $23,724

answer as is. need to know for homework study guide prep :)