Peder Mueller is a foreign exchange trader for a bank in New York. He has USD1,573,510 (or its Swiss franc equivalent) for a short-term money market investment and wonders whether he should invest in U.S. dollars for three months or make a CIA investment in the Swiss franc (CHF). He faces the following quotes:
Spot exchange rate(CHF =USD1.00) 1.2810
3-month forward rate(CHF =USD1.00) 1.2740
U.S. dollar 3-month interest rate 4.800%
Swiss franc 3-month interest rate 3.200%
What is arbitrage profit? Note: do not round intermediate steps. Round the final answer to the nearest dollar.