You are considering a Covered Interest Arbitrage (Carry Trade) between the US and Mexico over the next 90 days. The following data apply (all borrowing & lending rates are annualized). Note: Use 90/360 to convert to 90-day rates. US: Lending rate = 2.25%, Borrowing rate = 2.75% Mexico: Lending rate = 6.35%, Borrowing rate = 7.00% Spot rate of Mexican Peso (MXN) = USD 0.0471 per 1 MXN 90-day Forward rate quote = 0.0476 USD per 1 MXN Assume you have USD 4946601 in capital. Part 1: You will borrow units of currency in the country from which you will borrow from over the next 90-days. Part 2: You will lend units of currency in the country in which you will lend in for the next 90 days. Part 3: You will be paid Mexican Pesos in 90-days. Part 4: The number of Mexican Pesos from the previous Part will convert to USD. Part 5: In 90-days you will owe USD. Part 6: Your Profit in will be USD. Part 7: Your 90-daypercent Return will be % Part 8: The Forward rate at which your profit from this trade is zero equals USD per 1 MXN