Casper Landsten is a foreign exchange trader for a bank in New York. Using the values and assumptions below, he decides to seek the full 4.803% return available in U.S. dollars by not covering his forward dollar receiptsan uncovered interest arbitrage (UIA) transaction. Assess this decision. Arbitrage funds available $ 1,050,000 Spot exchange rate (SFr/$) 1.2813 3-month forward rate (SFr/$) 1.2741 Expected spot rate in 90 days (SFr/$) 1.2701 U.S. Dollar annual interest rate 4.803 % Swiss franc annualinterest rate 3.203 %

The uncovered interest arbitrage (UIA) profit amount is $