Equinor's Corporate Arbitrage. Equinor, the national oil company of Norway, is a large, sophisticated, and active participant in both the currency and petrochemical

markets. Although it is a Norwegian company, because it operates within the global oil market, it considers the U$.$S$.$ dollar, rather than the Norwegian krone $($Nok$),$ as

its functional currency. Ari Karlsen is a currency trader for Equinor and has immediate use of either $$3\mathrm{.}05$ million $($or the Norwegian krone equivalent$).$ He is faced with

the following market rates, $,$ and wonders whether he can make some arbitrage profits in the coming $90$ days.

The CIA profit potential is $\%,$ which tells Ari Karlsen he should borrow

and invest in the

yielding currency, the

selling the dollars forward $90$ days, and therefore earn covered interest arbitrage $($CIA$)$ profits. $($Round to four decimal places and select from the drop$-$down menus.$)$