Homework: Ch 6 HW Save Score: 13.5 of 18 pts 5 of 6 (5 complete) HW Score: 72.17%, 72.17 of 100 pts Problem 6-7 (algorithmic) Question Help 0 Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Is CIA profit possible? If so, how? invest $4.900.000 or its yen equivalent, in a covered interest arbitrage between U.S. Arbitrage funds available Spot rate (W/S) 180-day forward rate (4/5) U.S. dollar annual interest rate Japanese yen annual interest rate 4,900,000 118.56 117.86 4.801 % 3.392 % to lock in a covered interest arbitrage (CIA) profit. (Round to three The CIA profit potential is -0.221 %, which tells Takeshi Karnada that he should borrow the Japanese yen and invest in the higher yielding currency, the U.S.dollar decimal places and select from the drop-down menus.) , and simultaneously selling the proceeds forward into at a forward premium which does not completely negate the Takeshi Kamada generates a CIA profit of by investing in the interest rate currency, the interest differential. (Round to two decimal places and select from the drop-down menus.) Homework: Ch 6 HW Save Score: 13.5 of 18 pts 5 of 6 (5 complete) HW Score: 72.17%, 72.17 of 100 pts Problem 6-7 (algorithmic) Question Help 0 Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Is CIA profit possible? If so, how? invest $4.900.000 or its yen equivalent, in a covered interest arbitrage between U.S. Arbitrage funds available Spot rate (W/S) 180-day forward rate (4/5) U.S. dollar annual interest rate Japanese yen annual interest rate 4,900,000 118.56 117.86 4.801 % 3.392 % to lock in a covered interest arbitrage (CIA) profit. (Round to three The CIA profit potential is -0.221 %, which tells Takeshi Karnada that he should borrow the Japanese yen and invest in the higher yielding currency, the U.S.dollar decimal places and select from the drop-down menus.) , and simultaneously selling the proceeds forward into at a forward premium which does not completely negate the Takeshi Kamada generates a CIA profit of by investing in the interest rate currency, the interest differential. (Round to two decimal places and select from the drop-down menus.)