The interest rate (on an annual basis) on 6-month Treasury bills is 2% in Japan and 4% in the U.S. and the spot rate 120/$. If the 6-month forward rate is 118/$ and you have $1,000,000 to invest, can you make a covered interest arbitrage profit and how much?Assume you are a U.S. investor.

A. No, arbitrage profit is not possible

B. Yes, $ 7,118.64

C. Yes, $ 3,487.39

D. Yes, $ 2,911.39

E. Yes, $ 1,428.57