14-83 If the bank receives a quote of $0.1975/€ for one-year forward rates for the Euro (to buy and to sell) ,what is the arbitrage profit for the bank if it uses either $1,000,000 as the notional amount?
A) $5,000.
B) $16,500.
C) $19,350.
D) $22,000.
E) $25,675.
Correct Answer:
Verified
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