Casper Landsten-Thirty Days Later. Casper Landsten once again has

$1.1

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	$	1,100,000
Spot exchange rate (SFr/$)		1.3396
3-month forward rate (SFr/$)		1.3287
U.S. Dollar annual interest rate		4.749	%
Swiss franc annual interest rate		3.623	%

The CIA profit potential is

nothing%,

which tells Casper Landsten he should borrow

U.S. dollars

and invest in the

lower

higher

lower

yielding currency, the

Swiss franc

Swiss franc

U.S. dollar

, and then sell the

Swiss franc

Swiss franc

U.S. dollar

principal and interest forward three months locking in a CIA profit. (Round to three decimal places and select from the drop-down menus.)