These are the answers but what are the calculations to get these numbers?

Homework 6 The spot exchange rate between the Euro () and US dollar is $1.15 / . Interest rates in the U.S. and Europe are 3% and 1% per year, respectively, with continuous compounding. The three-month forward exchange rate is $1.18 / . What arbitrage strategy is possible? What is the amount of the arbitrage profit for 1,000,000? F = 1.15e eC03-01/12) = 1.1558 0 T Sell forward 0 $1,180,000 Receive $, Pay Lend PV of 1,000,000 Spot 997,503 1,000,000 Receive Borrow $ Spot $1,147,129 $1,155,764 Pay $ Net Cash Flow 0 $24,236