You may borrow $25,000 worth of any currency that you are free to invest in any currency. You can trade, borrow, and lend at the following rates:
Spot rate, US dollars per South Korean won (W) 0.00125$/W
One year forward rate for $/W 0.00147$/W
One year Korean interest rate 7%
One year U.S. interest rate 19%
Is covered interest arbitrage worth while? If so, explain the steps and compute the profit based on your initial $25,000 worth of either currency.