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AvtoVAZ OAO a leading auto manufacturer o Casper Landsten UA (B). Casper Landsten is a foreign exchange trader for a bank in New York Using

AvtoVAZ OAO a leading auto manufacturer
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o Casper Landsten UA (B). Casper Landsten is a foreign exchange trader for a bank in New York Using the values and assumption below, he decides to the main US dollars by not covers forward dollar receipts an uncovered interest arbitrage (UA) transaction Assess this decision Arbitrage funds available $ 1.000.000 Spot exchange rate (SF15) 1 2006 3-month forward rate (SF) 12743 Expected spot rate in 90 days (SF/5) 12699 US Dollar annual interest rate 4.798 % Swiss franc annunterest rate 3.201 Question Viewer The uncovered interest arbitrage (UIA) profit amount is Round to the nearest cent)

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