Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest

$5.15.1

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	$	5,100,000
Spot exchange rate (kr/$)		6.1715
3-month forward rate (kr/$)		6.1981
U.S. dollar annual interest rate		2.950	%
Danish krone annual interest rate		4.950	%

The CIA profit potential is 0.283%, which tells Heidi Hi Jensen that she should borrow U.S. dollars and invest in the higher yielding currency the Danish krone for CIA profit. (Round to three decimal places and select from the drop-down menus.)

Heidi Hi Jensen generates a covered interest arbitrage (CIA) profit of $___? (Round to the nearest cent.)