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Kamada: UIA Japan (B). Takeshi Kamada, Credit Suisse (Tokyo), observes that the yen-dollar spot rate has been holding steady, and that both dollar and yen

image text in transcribed Kamada: UIA Japan (B). Takeshi Kamada, Credit Suisse (Tokyo), observes that the yen-dollar spot rate has been holding steady, and that both dollar and yen interest rates have remained relatively fixed over the past week. Takeshi wonders if he should try an uncovered interest arbitrage (UIA) and thereby save the cost of forward cover. Many of Takeshi's research associates_and their computer models_are predicting the spot rate to remain close to 118.00=$1.00 for the coming 180 days. Using the same data here, , analyze the UIA potential. The UIA profit potential is \%, which tells Takeshi Kamada that he should borrow and invest in the yielding currency, the uncovered basis (UIA). (Round to three decimal places and select from the drop-down menus.) yielding currency, the to potentially gain on ar Data table

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