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 1.2810 Arbitrage funds available Spot exchange rate (CHF = USD1.00) 3-month forward rate (CHF = USD1.00) U.S. Dollar annual interest rate Swiss franc annual interest rate 1.2740 4.800 % 3.200 % ... and invest in the yielding currency, the in order to earn covered The CIA profit potential is %, which tells Casper Landsten he should borrow 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.)