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The spot exchange rate for Swiss francs and British pounds is CHF/GBP 1.1825 120-day CHF rate is 4.5% 12- day GBP rate is 6.5% If

The spot exchange rate for Swiss francs and British pounds is CHF/GBP 1.1825

120-day CHF rate is 4.5%

12- day GBP rate is 6.5%

If the market quoted 120-day forward rate is 1.2015 CHF/GBP, calculate the arbitrage profits based on 5 million GBP.

answer is : 136,475.00 CHF

Please show work using only a calculator, no excel please.

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