You work for a large international bank that has divisions engaged in the trading of equities, bonds, currencies, and commodities. You were recently assigned to the arbitrage desk in Johannesburg, South Africa, joining a team that specialises in seeking and acting upon (risk-free) trading opportunities that arise in spot and forward interest rate (IR) and foreign exchange (FX) markets in South Africa. You are currently monitoring IR and FX rates for South Africa and Russia, whose currencies are the rand (ZAR) and the rouble (RUB), respectively. This morning you observed current rates as follows (assume that all market participants can transact at the given rates, i.e. there are no bid-ask spreads): . ZAR:RUB spot = 4.6600 (i.e. one rand buys 4.66 roubles) ZAR:RUB 90-day forward = 4.7215 ZAR:RUB 180-day forward = 4.7505 ZAR interest rates: spot 3.40%; 90-day forward 3.55%; 180-day forward 3.65% RUB interest rates: spot 6.70%; 90-day forward 6.45%; 180-day forward 6.25% Specify the amount (in ZAR) that could be gained by arbitraging the mispricing implied in the above markets (hint - focus on the 180-day forwards). Your trading limit is ZAR 15 million per week