You observe the following current rates and prices today: - the spot exchange rate today: AU$2.00 per euro, - the one-year nominal interest rate on bank deposits in Australia: i($) = 3%. - the one-year nominal interest rate on bank deposits in Germany: i(euro) = 5%. Suppose that the covered interest parity does not hold at the moment with the 1-year forward rate of AU$1.90 per euro. Assume that you can borrow either AU$2.0 million in Australia, or 1 million euros in Germany. The annual saving rates in two countries are the same as the borrowing rates: 3% in Australia and 5% in Germany. Explain how you will make risk-free profits in one year using the forward market and the spot markets today. The answer should have the amount of transactions and the risk-free profit (zero decimal places) in one year in AU$. Show all working to get full marks.