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Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit $ uisse (Tokyo), is exploning covered interest arbirage possbbities. He wants to invest

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Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit $ uisse (Tokyo), is exploning covered interest arbirage possbbities. He wants to invest $5,000,000 or its yen equivalent, in a covered interest arbitrage besween U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes: is ClA profit possible? if sa, how? The CIA profit potential is Th, which tolis Takeshi Kamada that he should bocrow and invest in the higher yelding ourrency. to lock in a covered interest arbitrage (CLA) profit. (Riound to three decimal places and select from the drop-down menus) Takeshi Kamada generates a CIA profit of y by investing in the interest rale currency, the , and simultareously seling the proceeds forwart into at a forwars premium which does not completey negate the interest differential, (Round to two decimal places and seloct from the drop-down menus) Data table (Click on the following icon on in order to copy its contents into a spreadsheet). Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit $ uisse (Tokyo), is exploning covered interest arbirage possbbities. He wants to invest $5,000,000 or its yen equivalent, in a covered interest arbitrage besween U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes: is ClA profit possible? if sa, how? The CIA profit potential is Th, which tolis Takeshi Kamada that he should bocrow and invest in the higher yelding ourrency. to lock in a covered interest arbitrage (CLA) profit. (Riound to three decimal places and select from the drop-down menus) Takeshi Kamada generates a CIA profit of y by investing in the interest rale currency, the , and simultareously seling the proceeds forwart into at a forwars premium which does not completey negate the interest differential, (Round to two decimal places and seloct from the drop-down menus) Data table (Click on the following icon on in order to copy its contents into a spreadsheet)

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