Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $1.1 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 CIA investment in the Swiss franc. He faces the following quotes: Arbitrage funds available $ 1,100,000 Spot exchange rate (SFr/S) 3-month forward rate (SFr/$) U.S. Dollar annual interest rate 4.798 % Swiss franc annual interest rate 3.205 % 1.2815 1.2744 and invest in the The CIA profit potential is %which tells Casper Landsten he should borrow yielding currency, the in order to earn covered interest arbitrage (CIA) profits. (Round to three decimal places and select from the drop-down menus.)