Statoil's Arbitrage. Statoil, the national oil company of Norway, is a large, sophisticated, and active participant in both the currency and petrochemical markets. Although it is a Norwegian company, because it operates within the global oil market, it considers the U.S. dollar, rather than the Norwegian krone, as its functional currency. Ari Karlsen is a currency trader for Statoil, and has immediate use of either

$33

million (or the Norwegian krone equivalent). He is faced with the following market rates and wonders whether he can make some arbitrage profits in the coming 90 days.

Abitrage funds available	$	3,000,000
Spot exchange rate (Nok/$)		6.0319
3-month forward rate (Nok/$)		6.0184
U.S. dollar annual interest rate		4.999	%
Norwegian krone annual interest rate		4.453	%

The CIA profit potential is 0.3512%, which tells Ari Karlsen he should borrow U.S. dollars and invest in the lower yielding currency, the Norwegian krone, selling the dollars forward 90 days, and therefore earn covered interest arbitrage (CIA) profits. (Round to four decimal places and select from the drop-down menus.)

The CIA profit amount is $___. (Round to the nearest cent.)