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$ Casper Landsten-CIA (A) Casper Landsten is a foreign exchange trader for a bank in New York. He has $0.9 million (or its Swiss franc

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$ Casper Landsten-CIA (A) Casper Landsten is a foreign exchange trader for a bank in New York. He has $0.9 million (or its Swiss franc equivalent) for a short form money market Investment and wonder if he should invest in U.S. dollars for three months, or make a CIA investment in the Swiss franc. He fuces the following quotes: Arbitrage funds available 900,000 Spot exchange rate (SF1/5) 1.2807 3-month forward rate (SFd/5) 1 2736 US Dollar annual interest rate 4,801% Swiss franc annual interest rate 3.202% The CIA profit potential is 3%, which tells Casper Landsten he should borrow and invest in the Interest arbitrage (CIA) profits (Round to three decimal places and select from the drop-down menus) yolding currency, the in order to covered

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