Cosider the following quotes:
sopt exchange rate. 1.60 USD/EUR
180-day forward rate 1.70 USD/EUR
180-day USD LIBOR (R$). 6% P.A.
180-day GBO LIBOR (R EUR) 4% P.A.
Is covered interest arbitrage possible? If so,, describe the steps and calculate how much can be earned on a national principal amount of $100 million or its equivalent in GBP.