You are a trader $($arbitrageur$)$ at Platypus Capital $($a hedge fund$).$

You are given the following information.

The spot exchange rate today for the number of Norwegian Krona $($NOK$)$ per Euro $($EUR$)$

is $4\mathrm{.}80$ NOK $=1$ EUR.

The annualised Norwegian LIBOR interest$-$rate $($for the three month period starting today$)$ is $4\%.$

The annualised Euro LIBOR interest$-$rate $($for the three month period starting today$)$ is $8\%.$

Assume three months is exactly $0\mathrm{.}25$ years.

Suppose that a bank is actually quoting the$$

three month forward rate for the Norwegian Krona $($NOK$)$ per Euro $($EUR$)$

as $4\mathrm{.}7900-4\mathrm{.}8000.$

Suppose that you are allowed to borrow $12$ mio NOK today $($at $4\%).$ How many NOK arbitrage profit can you make? $$

Give your answer to the nearest NOK. Do your calculations in excel and avoid rounding errors.