Question: Question 12 (3 points) A currency dealer can borrow $1,000,000 (or the equivalent in euros) for one year. The one-year interest rate is 3.70% in

Question 12 (3 points) A currency dealer can borrow $1,000,000 (or the equivalent in euros) for one year. The one-year interest rate is 3.70% in the U.S. and 7.10% in the euro zone. The spot exchange rate is $1.2144/1.00 and the one-year forward exchange rate is $1.1908/1.00. What arbitrage profit results if the trader borrows the maximum available funds? $11,073.87 OR 9,299.52 $13,186.76 OR 11,073.87 O $44,591.98 OR 37,447.08 $34,000.00 OR 28,552.23 $7,308.75 OR 6,137.68 O $59,307.34 OR 49,804.62

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