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The one-year U.S interest rate is 2%. The one-year interest rate in the euro zone is 6%. The spot rate is $1.25 per euro, and

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The one-year U.S interest rate is 2%. The one-year interest rate in the euro zone is 6%. The spot rate is $1.25 per euro, and the one-year forward rate is $1.20 per euro. You can borrow either $1 million or 800,000 euros for one year. The profit from covered interest arbitrage in USD is: 0.00 USD 2,000 USD 2.400 USD None of the above

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