International business.
Assume that you have the following information:
Spot Rate: 16.5292 Yen/Yuan
OneYear Forward Exchange Rate: 15.1418 Yen/Yuan
One Year Yen Interest Rate: 2.85%
OneYear Yuan Interest Rate: 2.58%
Is covered interest arbitrage worthwhile? If so, calculate the profit after one year assuming that you have 500,000 Yuan.