John Ready Inc, borrows euros and invests in pounds. Carl will use $450,000 of his money and will borrow an
additional €500,000. He will earn 1.2% next month in British Pounds and will pay 0.7% monthly in euros. Euro spot rate is $1.22/€, pound is $1.65/£. Find Expected profit. Assume expected future spot is the same as current spot price.