Peder Mueller-CIA (A). Peder Mueller is a foreign exchange trader for a bank in New York. He has USD 1 million (or its Swiss franc equivalent) for a short-term money market investment and wonders whether he should invest in U.S. dollars for three months or make a CIA investment in the Swiss franc (CHF). He faces the following quotes: $ 1,000,000 Arbitrage funds available Spot exchange rate (CHF = USD1.00) 1.2810 3-month forward rate (CHF = USD1.00) 1.2740 US Dollar annual interest rate 4.800 % Swiss franc annual interest rate 3.200 % yielding currency, the in order to earn covered The CIA profit potential is %, which tells Casper Landsten he should borrow Vand invest in the interest arbitrage (CIA) profits. (Round to three decimal places and select from the drop-down menus.) The CIA profit amount is $ (Round to the nearest cent.)