Show Work 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? $ Arbitrage funds available Spot rate (V/S) 180-day forward rate (V/$) U.S. dollar annual interest rate Japanese yen annual interest rate 5,000,000 118.55 117.87 4.809% 3.397 % and invest in the higher yielding currency, V to lock in a covered interest arbitrage (CIA) profit. (Round to three decimal The CIA profit potential is %, which tells Takeshi Kamada that he should borrow places and select from the drop-down menus.) Takeshi Kamada generates a CIA profit of y by investing in the interest rate currency, the interest differential. (Round to two decimal places and select from the drop-down menus.) v. and simultaneously selling the proceeds forward into ata forward premium which does not completely negate the Enter your answer in each of the answer boxes