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 if he should invest in U.S. dollars for three months, or make a covered interest arbitrage investment in the Swiss franc. He faces the following quotes: SFr. Equivalent SFr. 1,281,000 Assumptions Arbitrage funds available Spot exchange rate (SFr./S) 3-month forward rate (SFr./S) U.S. dollar 3-month interest rate Swiss franc3-month interest rate Value $1,000,000 1.2810 1.2740 4.800% 3.200% Casper Landsten borrows U.S. dollars and invests in the LOWER yielding currency, the Swiss franc, in order to earn covered interest arbitrage (CIA) profits. What are those porfits expressd in USD? O $1,538.46 $1,838.49 O $1,877.50 $1,821.19