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Copenhagen Covered (A). Heidi HOi Jensen, a foreign exchange trader at JPMorgan Chase, can invest $5 million, or the foreign currency equivalent of the bank's

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Copenhagen Covered (A). Heidi HOi Jensen, a foreign exchange trader at JPMorgan 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/S) 6.1720 3-month forward rate (kr/S) 6.1980 U.S. dollar 3-month interest rate 3.000% Danish kroner 3-month interest rate | 5.000%

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