You are an investment manager in the United Arab Emirates, which uses the Dirham as its currency. You see interest rates around the world and your foreign exchange trading team (as always staffed by NYU alums) has provided you with the current spot rate and an expected future spot rate between Denmark (currency: Krone) and your local currency the Dirham.

*Current spot exchange rate is 0.42 Dirham per Krone

*The 1 year interest rate on the Dirham-denominated bank deposit is 4.5%

*The 1 year interest rate on the Krone-denominated bank deposit is 8.0%

*Expected future spot rate in 60 days is 0.40 Dirham per Krone.

Roughly speaking (we allow for rounding errors): If you invested 1 million Dirham (converted to Krone) into a bank in Denmark and then returned it using this expected future spot rate and assuming it turned out to be accurate, how much more money would our firm make or lose in Denmark than our home country of the United Arab Emirates (be sure to note if this was a gain or loss)?