Casper Landsten-UIA (B). Casper Landsten is a foreign exchange trader for a bank in New York. Using the values and assumptions below, he decides to seek the full

4.801%

return available in U.S. dollars by not covering his forward dollar

receiptsan

uncovered interest arbitrage (UIA) transaction. Assess this decision.

Arbitrage funds available	$	900,000
Spot exchange rate (SFr/$)		1.2815
3-month forward rate (SFr/$)		1.2742
Expected spot rate in 90 days (SFr/$)		1.2697
U.S. Dollar annual interest rate		4.801	%
Swiss franc annualinterest rate		3.202	%

Question content area bottom

Part 1

The uncovered interest arbitrage (UIA) profit amount is

$enter your response here.

(Round to the nearest cent.)