Explain the current spot exchange rate

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The current spot exchange rate is RM3.4118/USD, while the 6-month forward rate is RM3.4145/USD. If the 6-month interest rate in Malaysia and US is 3.75% and 2.85% respectively, can a currency arbitrager profit from covered interest opportunity? How much would the profit be (in RM) if the arbitrager initially invest or borrow USD2 million?

Reference no: EM133111736

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