Question 2 A foreign exchange trader at Credit Suisse is exploring covered interest arbitrage opportunities. She wants to invest $4,000,000 or its yen equivalent, in a covered interest arbitrage between US dollars and Japanese yen. The /$ spot rate is 115.60 and the /$ 180-day forward rate is 114.80. In addition, the 180-day US dollar interest rate is 4.8%, while 180-day Japanese yen interest rate is 3.3%. What should the trader do to generate profit?