Question: Given the following information, evaluate whether it is possible to make a covered interest arbitrage profit. Assume that you have $5,000,000 available. What is the

Given the following information, evaluate whether it is possible to make a covered interest arbitrage profit. Assume that you have $5,000,000 available. What is the arbitrage profit that is possible (in dollars)?

Spot exchange rate (kr/$)	6.1722
3-month forward rate (kr/$)	6.1977
U.S. dollar 3-month interest rate (in annual terms)	3.05%
Danish krone 3-month interest rate (in annual terms)	5.00%

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