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.

Spot exchange rate $($kr$/$$$)$: $6\mathrm{.}1720$

$3-$month forward rate $($kr$/$$$)$: $6\mathrm{.}1980$

U$.$S$.$ dollar $3-$month interest rate: $3\%$ per year

Danish kroner $3-$month interest rate: $5\%$ per year

$1.$Should this investor enter into a covered interest arbitrage investment? Calculate the profit difference on CIA $($compare alternative investments$).$

$2.$According to answer $1,$ calculate profits or losses and the overall return of the CIA transaction.

$3.$Is the Danish krone appreciating or depreciating? Explain. Calculate the premium or discount of the Swiss franc.