Flag question: Question 5
Question 53 pts
Equinor, the national oil company of​ Norway, is a​ large, sophisticated, and active participant in both the currency and petrochemical markets. Although it is a Norwegian​ company, because it operates within the global oil​ market, it considers the U.S.​ dollar, rather than the Norwegian krone​ (Nok), as its functional currency. Ari Karlsen is a currency trader for Equinor and has immediate use of either ​$2,951,816​ (or the Norwegian krone​ equivalent). He is faced with the following market​ rates:

Spot exchange rate​(Nok =​$1.00) 6.0312
​3-month forward rate​(Nok =​$1.00) 6.0186
U.S. dollar​ 3-month interest rate 5.000​%
Norwegian krone​ 3-month interest rate 4.450​%


Calculate arbitrage profits. Note: do not round intermediate steps. Round the final answer to the nearest dollar.