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Assume the following information: You have $1,000,000 to invest Spot rate 90 day forward rate...

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Finance

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Assume the following information: You have $1,000,000 to invest Spot rate 90 day forward rate Money market rate in the U.S. Money market rate in the in Euro zone $1.36/ $1.41/ 1% per annum 3% per annum If you use covered interest arbitrage for a 90-day investment, is it possible to produce an arbitrage profit in US dollars after 90 days? Show all calculations necessary to prove that an arbitrage profit was made

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