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Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $1.05 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 $1.05 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 (SFri5) 3-month forward rate (SFr/S) U.S. Dollar annual interest rate Swiss franc annual interest rate 1,050,000 1.2808 2741 4801 % 3199 % The CIA profi potential is[ ]%, which tells Casper Landsten he should borrow to earn covered interest arbitrage (CIA) profits. (Round to three decimal places and select from the drop-down menus and invest in theyielding currency, the in order The CIA profit amount is $(Round to the nearest cent

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