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 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 Spot exchange rate (kr/5) 3-month forward rate (kr/5) U.S. dollar annual interest rate Danish krone annual interest rate $ 4,950,000 6.1722 6.1984 2.950 % 5.050 % and invest in the higher yielding currency the The CIA profit potential is 0.409 %, which tells Heidi Hi Jensen that she should borrow U.S. dollars Danish krone , for CIA profit. (Round to three decimal places and select from the drop-down menus.) Heidi Hoi Jensen generates a covered interest arbitrage (CIA) profit of $ (Round to the nearest cent.)