% Problem 6-9 (algorithmic) Question Help Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $4.9 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Denmark. Using the following quotes, can Heidi make a covered interest arbitrage (CIA) profit? $ Arbitrage funds available Spot exchange rate (kr/S) 3-month forward rate (kr/$) U.S. dollar annual interest rate Danish krone annual interest rate 4,900,000 6.1724 6.1978 3.100 % 4.900 % The CIA profit potential is 0.161 %, which tells Heidi Hi Jensen that she should borrow U.S. dollars and invest in the higher yielding currency the Danish krone , for CIA profit. (Round to three decimal places and select from the drop-down menus.) Heidi Hoi Jensen generates a covered interest arbitrage (CIA) profit of $ (Round to the nearest cent.) % Problem 6-9 (algorithmic) Question Help Copenhagen Covered (A). Heidi Hi Jensen, a foreign exchange trader at J.P. Morgan Chase, can invest $4.9 million, or the foreign currency equivalent of the bank's short term funds, in a covered interest arbitrage with Denmark. Using the following quotes, can Heidi make a covered interest arbitrage (CIA) profit? $ Arbitrage funds available Spot exchange rate (kr/S) 3-month forward rate (kr/$) U.S. dollar annual interest rate Danish krone annual interest rate 4,900,000 6.1724 6.1978 3.100 % 4.900 % The CIA profit potential is 0.161 %, which tells Heidi Hi Jensen that she should borrow U.S. dollars and invest in the higher yielding currency the Danish krone , for CIA profit. (Round to three decimal places and select from the drop-down menus.) Heidi Hoi Jensen generates a covered interest arbitrage (CIA) profit of $ (Round to the nearest cent.)