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Casper Landsten-UIA (B). Casper Landston in 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 Landston in a foreign exchange trader for a bank in New York Using the values and assumptions below, he decides to seek the full 4.797% return available in U.S. dollars by not covering his forward dolar receipts an uncovered interest arbitrago (UIA) transaction. Assess this decision Arbitrage funds available $ 900,000 Spot exchange rate (SF/15) 1.2814 3-month forward rate (SFf/5) 1.2743 Expected spot rate in 90 days (SFr/S) 1.2698 U.S. Dollar annual interest rate 4.797 % Swiss franc annualinterest rate 3.203 % The uncovered interest arbitrage (UIA) profit amount is $. (Round to the nearest cent.)

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