Question: How do you determine the correct order here? Borrow, Sell, Invest, Buy as opposed to borrow, buy, invest, sell? And is the borrowed currency determined

How do you determine the correct order here? Borrow, Sell, Invest, Buy as opposed to borrow, buy, invest, sell? And is the borrowed currency determined by lower interest rate? . (1) Borrow A$1,176,471 and repay A$1,225,883 in one year. (2) Sell spot A$1,176,471 for $1,000,000. (3)

. (1) Borrow A$1,176,471 and repay A$1,225,883 in one year. (2) Sell spot A$1,176,471 for $1,000,000. (3) Invest $1,000,000 in the US. The maturity value will be $1,035,000. (4) Buy A$1,225,883 forward for $992,965. Arbitrage profit = $1,035,000 - $992,965 = $42,035.

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