Casper Landsten-Thirty Days Later. Casper Landsten once again has $1.05 million (or its Swiss franc equivalent) to invest for three months. He now faces the following rates. Should he enter into a covered interest arbitrage (CIA) investment? $ Arbitrage funds available Spot exchange rate (SFr/$) 3-month forward rate (SFr/S) U.S. Dollar annual interest rate Swiss franc annual interest rate 1,050,000 1.3394 1.3285 4.748 % 3.621 % and The CIA profit potential is then sell the menus.) %, which tells Casper Landsten he should borrow and invest in the yielding currency, the principal and interest forward three months locking in a CIA profit. (Round to three decimal places and select from the drop-down The CIA profit amount is $ (Round to the nearest cent.) Should he enter into a covered interest arbitrage (CIA) investment? (Select the best choice below.) O A. Yes, Casper should undertake the covered interest arbitrage transaction, as it would yield a riskless profit (exchange rate risk is eliminated with the forward contract, but counterparty risk still exists if one of his counterparties failed to actually make good on their contractual commitments to deliver the forward or pay the interest) of $1,050,000 on each $5,734.59 invested. OB. No, Casper should not undertake the covered interest arbitrage transaction, as it would yield a risky profit (exchange rate risk is increased with the forward contract, and counterparty risk still exists if one of his counterparties failed to actually make good on their contractual commitments to deliver the forward or pay the interest) of $1,050,000 on each $5,734.59 invested. O C. Yes, Casper should undertake the covered interest arbitrage transaction, as it would yield a riskless profit (exchange rate risk is eliminated with the forward contract, but counterparty risk still exists if one of his counterparties failed to actually make good on their contractual commitments to deliver the forward or pay the interest) of $5.734.59 on each $1.05 million invested. O D. No, Casper should not undertake the covered interest arbitrage transaction, as it would yield a risky profit (exchange rate risk is increased with the forward contract, and counterparty risk still exists if one of his counterparties failed to actually make good on their contractual commitments to deliver the forward or pay the interest) of $5,734.59 on each $1.05 million invested