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

$4.95

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	$	4,950,000
Spot exchange rate (kr/$)		6.1722
3-month forward rate (kr/$)		6.1979
U.S. dollar annual interest rate		3.000	%
Danish krone annual interest rate		5.000	%

The CIA profit potential is ____%, which tells Heidi Hi Jensen that she should borrow_______(Danish krones or U.S. dollars) and invest in the higher yielding currency the _______ ( Danish krone U.S. dollar) for CIA profit. Round to three decimal places

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