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Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities....

Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $5,000,000 or its yen equivalent, in a covered interest arbitrage between U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes.

Arbitrage funds available $5,000,000 or its Yen equivalent

Spot rate ¥/$ 118.60

360 day Forward rate ¥/$ 117.80

U.S. dollar annual interest rate 2.4%

Japanese yen annual interest rate 1.7%

What would be his arbitrage profit in Yen? (round to two decimal places).

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