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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

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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 4 795% return available in U S dollars by not covering his forward dollar receipts-an uncovered interest arbitrage (UIA) transaction. Assess this decision Arbitrage funds available Spot exchange rate (SFriS) 3-month forward rate (SFr/S) Expected spot rate in 90 days (SFriS) U.S. Dollar annual interest rate Swiss franc annualinterest rate $ 900,000 2813 1.2737 2701 4.795 % 3.203 % The uncovered interest arbitrage (UIA) profit amount is S(Round to the nearest cent)

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