Copenhagen Covered (A). Heidi Hoi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $4.9 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 $ 4,900.000 Spot exchange rate (kr/5) 6.1718 3-month forward rate (kr/5) 6.1985 U.S. dollar annual interest rate 2.950 % Danish krone annual interest rate 5.050 % The CIA profit potential is %, which tells Heidi Hoi 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.)