Suppose you observe the following one-year interest rates, spot exchange rates and futures prices. Futures contracts are available on 125,000. How much risk-free arbitrage profit could you make on one contract at maturity from this mispricing?

S0($/) $1.25 = 1.00 i$ 4.0%

F360($/) $1.21 = 1.00 i 3.0%

$4,794

$3,532 None of the options are correct. $5,255

$3,532 None of the options are correct. $5,255