Kamada VIA Japan (B) Te Kanada, Credit Suisse (Tokyol, observed that the sport has been holding and both dolar and on interest rates have remained relatively feed over the past wonder the should try uncovered interest arbitrage (UIA) and thereby save the cost of forward cover. Mary's reach secate and computer models are predicting the spot rate to remain close to 118005 for the coming 180 days Using the data below, analyze the UIA potential Arbitrage funds available $ 4.000.000 Spot rates 118.57 180-day forward (W) 117.81 Expected sperate in 180 days (5) 118.00 US dollar anual interest rate 4.7 Japanese yen wa interest rate 3.395 The UIA proft potentials which als Takesh Kanada that he should borrow and invest in the yielding currency, the to potentially gain on an uncovered basis (UA) (Round to three decimal places and select from the drop-down menus) this expectations about the future spot rate, the one in otect in 180 day, prove correct, Takeshi Kamada generates an uncovered interest wtirage (UIA) profit or Pound to two decimal places) The risk Takeshi is taking is that the spot rate at the end of the period can theoretically be anything better or worse for his speculative position. A movement will cost him of money (elect from the drop-down menus)