Casper LandstenUIA (B). Using the same values and assumptions as in Problem 12, Casper Landsten decides to

Question:

Casper Landsten—UIA (B). Using the same values and assumptions as in Problem 12, Casper Landsten decides to seek the full 3.80% return available in U.S.

dollars by not covering his forward dollar receipts—

an uncovered interest arbitrage (UIA) transaction.

Assess this decision.

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