6.12 Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $1 million (or its Swiss franc equivalent) for a short-term money market investment and wonders whether he should invest in U.S. dollars for three months or make a CIA investment in the Swiss franc. He faces the following quotes: Arbitrage funds available Spot exchange rate (SFr/$) 3-month forward rate (SFr/$) U.S. dollar 3-month interest rate Swiss franc 3-month interest rate $1,000,000 1.2810 1.2740 4.800% 3.200% 6.13 Casper Landsten-UIA (B). Casper Landsten, using the same values and assumptions as in Problem 6.12, decides to seek the full 4.800% return available in U.S. dollars by not covering his forward dollar receipts-an uncovered interest arbitrage (UIA) transaction. Assess this decision. 6.14 Casper Landsten-Thirty Days Later. One month after the events described in Problems 6.12 and 6.13, Casper Landsten once again has $1 million (or its Swiss franc equivalent) to invest for three months. He now faces the following rates. Should he again enter into a covered interest arbitrage (CIA) investment?