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Copenhagen Covered (C). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5 million, or the foreign currency equivalent of the

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Copenhagen Covered (C). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $5 million, or the foreign currency equivalent of 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 ClA profit one way or another.) The ClA profit potential is %, which tells Heidi Hei Jensen that she should borrow gaining on the re-exchange of kroner for dollars at the end of the period. (Round to three decimal places and select from the drop-down menus.)

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