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Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at JPMorgan Chase, can invest $5.05 million or the Danish kroner (kr) equivalent, of the

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Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at JPMorgan Chase, can invest $5.05 million or the Danish kroner (kr) 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? Note: From the table information, interest rates for both currencies are annual rates. They should be interpreted as U.S. dollar 3-month interest rate : X% "per annum" and Danish krone 3-month interest rate : Y\% "per annum." (Click on the following icon in order to copy its contents into a spreadsheet.) The CIA profit potential is \%, which tells Heidi Hi Jensen that she should borrow and invest in the higher yielding currency the 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.)

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