Suppose You Observe the Following One-Year Interest Rates,spot Exchange Rates

Multiple Choice

Suppose you observe the following one-year interest rates,spot exchange rates and futures prices.Futures contracts are available on €10,000.How much risk-free arbitrage profit could you make on one contract at maturity from this mispricing? $\begin{array}{l}\begin{aligned}& \text { Exchange Rate } &\text { Interest Rate }\\\mathrm{S}_{0}(\$ / €) & \$ 1.45=€ 1.00 \\\mathrm{F}_{360}(\$ / €) & \$ 1.4=€ 1.00\end{aligned}\begin{array}{l}\mathrm{APR} \\i \$ 4 \% \\i € 3 \%\end{array}\end{array}$

A) $159.22
B) $153.10
C) $439.42
D) none of the options