Copenhagen Covered (C). Heidi Hai Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5.05 milion, or the foreign currency equivalent o the bank's short term funds, in a covered interest arbitrage with Denmark. She is now evaluating the arbitrage profit potential in the same market after interest rates change. (Note that anytime the difference in interest rates does not exactly equal the forward premium, it must be possible to make CIA profit one way or another.) Arbitrage funds available Spot exchange rate (kris) 3-month forward rate (kri) US dollar annual interest rate Danish kroner annual interest rate 5.050,000 6.1721 6.1977 3.100 % 6050 % The CIA profit potential is 1.652 %, which tels Hed He Jensen that she should borrow Danis krone admestinte hi her interest rate currency. the d solar gaining on the re-exchange of kroner for dolars at the end of the period. (Rolnd to three decmal places andselect trom the drop-down menus.) The CIA proft amount is $ 26079967 50 (Round to the nearest cent.)