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 yen equivalent, in a covered interest arbitrage between US dollars and Japanese yen He faced the following exchange rate and interest rate quotes Is CIA profit possible? If so, how? The CIA profit potential is -0.169 %, which tells 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 by investing in the proceeds forward into from the drop-down menus.) interest rate currency, the and simultaneously selling the at a forward premium which does not completely negate the interest differential (Round to two decimal places and select