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 4.805%return available in U.S. dollars by not covering his forward dollar receiptsan uncovered interest arbitrage (UIA) transaction. Assess this decision.

Arbitrage funds available	$	950,000
Spot exchange rate (SFr/$)		1.2813
3-month forward rate (SFr/$)		1.2739
Expected spot rate in 90 days (SFr/$)		1.2698
U.S. Dollar annual interest rate		4.805	%
Swiss franc annualinterest rate		3.199	%

The uncovered interest arbitrage (UIA) profit amount is

(Round to the nearest cent.)