START 0. N. M END 1 A 1 (1) H >> () . D. E F Simon Baker, a foreign exchange trader at Lehman Brother Investment Bank (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $4,300,000 or its yen equivalent, in a covered interest arbitrage between U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Arbitrage Funds Available Spot Exchange Rate (/$) 180-day Forward Rate (/$) 180 day US dollar interest rate 180-day Danish Kroner interest rate $4,300,000 228.45 207.34 4.3000% 3.8000%