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 $\%$ return available in U$.$S$.$ dollars by not covering his forward dollar receiptsan uncovered interest arbitrage$($UIA$)$ transaction. Assess this decision.

Arbitrage funds available

$

$1,000,000$

Spot exchange rate $($SFr$/$$$)$

$1\mathrm{.}2811$

$3-$month forward rate $($SFr$/$$$)$

$1\mathrm{.}2745$

Expected spot rate in $90$ days $($SFr$/$$$)$

$1\mathrm{.}2697$

U$.$S$.$ Dollar annual interest rate

$4\mathrm{.}803$

$\%$

Swiss franc annualinterest rate

$3\mathrm{.}202$

$\%$

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Part $1$

The uncovered interest arbitrage$($UIA$)$ profit amount is