Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $4.950.000 or its en equivalent, in a covered interest arbitrage between US dollars and Japanese yen He taced the following exchange rate and interest rate quotes Is CIA profit possible? If so, how? Arbitrage funds avalable S 4,950,000 118.49 Spot rate (45) 180-day forward rate (W/S) US dollar annual interest rate 117.88 4809% Japanese yen annual interest rate 3398 % The CIA profit potential is - 0,408%, which tels Takeshi Kamada that he should borrow the Japanese yen and invest in the higher yielding currency the US dollar to lock in a covered interest arbitrage (CIA) profit. (Round to three decimal places and select from the drop-down menus) Takeshi Kamada generates a CIA profit of y by investing in the Interest rato currency, the and simultaneously selling the proceeds forward at a forward premium which does not completely negate the interest differential (Round to two decimal places and select from the drop down menus into Enter your answer in each of the answer boxes