Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Denmark. Using the following quotes, can Heidi make a covered interest arbitrage (CIA) profit? Arbitrage funds available $ 5,000,000 Spot exchange rate (kr/$) 6.1720 3-month forward rate (kr/$) 6.1980 U.S. dollar annual interest rate Danish krone annual interest rate 3.000 % 5.000 % The CIA profit potential is %, which tells Heidi Hi Jensen that she should borrow for CIA profit. (Round to three decimal places and select from the drop-down menus.) and invest in the higher yielding currency the