suppose you have $1 million to invest.   You are considering to invest in UK first, then convert the British Pound back to US$ in the future.   You know following information:   Annual Interest rate on investment in US: 2%   Annual Interest rate on investment in UK: 1% Investment period: 1 year   Current exchange rate: 1.52 $/BP   Forward exchange rate which you can apply when converting BP to US$: 1.53 $/BP   What will be profit or loss if you apply

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