Please answer the second part of the question: CIA Profit in Yen

Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $5,000,000 or its yen equivalent, in a covered interest arbitrage between U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Is CIA profit possible? If so, how? $ 5.000.000 118.53 Arbitrage funds available Spot rate ($) 180-day forward rate (\/$) U.S. dollar annual interest rate Japanese yen annual interest rate 117.83 4.804 % 3.399 % to lock in a The CIA profit potential is -0.217 %, which tells Takeshi Kamada that he should borrow the Japanese yen and invest in the higher yielding currency, the U.S. dollar covered interest arbitrage (CIA) profit. (Round to three decimal places and select from the drop-down menus.) Takeshi Kamada generates a CIA profit of by investing in the Vinterest rate currency, the and simultaneously selling the v proceeds forward into forward premium which does not completely negate the interest differential. (Round to two decimal places and select from the drop-down menus.) at a