Suppose that the one-year forward rate was a tiny bit too low at 0.8799/ (e.g., pounds appreciate) An astute trader would move quickly to 1. Borrow 1,000,000 at i = 5% 2. Trade 1,000,000 for 800,000 at the spot rates 3. Invest 800,000 at i = 1512% 4. Enter into a short position in a one-year forward contract on 924,000 at 0.8799/ In one year he has a cash inflow of 1,050,119.33 from the forward contract and owes