Henri Gilmont, an arbitrager with Bank of Montreal, faces the following Canadian dollar/US dollar quotes:
Spot rate: C$1.4900/$
6-month forward rate:C$1.5100/$
6-month Canadian dollar interest rate:7.50% p.a.
6-month US dollar interest rate:5.00% p.a.
Henri is authorized to use C$20,000,000 or its US dollar equivalent. The ending profit, if any, should be realized in Canadian dollars. How can he complete covered interest arbitrage? What will be his profit?