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Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $0.95 million (or its Swiss franc equivalent)

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Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $0.95 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 Spot exchange rate (SFriS) 3-month forward rate (SFris) U.S. Dollar annual interest rate Swiss franc annual interest rate $/950,.000 1.2813 1.2738 4.799 % 3.197 % T.in order land invest in theL | yielding currency, the The CIA profit potential is %, which tells Casper Landsten he should borrow o earn covered interest arbitrage (CIA) profits. (Round to three decimal places and select The CIA profit amount is (Round to the nearest cent)

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