Turkish Interest Rates Are 4 Percent Per Annum,while US Interest

Multiple Choice

Turkish interest rates are 4 percent per annum,while US interest rates are at 5 percent per annum.The spot exchange rate is 1.75 Turkish lira per US dollar,while the six-month forward price is 1.70 lira per US dollar.The arbitrage profit that you can generate today by trading one six-month forward contract and other securities is:

A) $0.057
B) $0.137
C) $0.374
D) $0.574
E) None of these answers are correct.