Takeshi 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? $ 5,000,000 Arbitrage funds available Spot rate (\/$) 180-day forward rate (\/$) 118.60 117.80 U.S. dollar annual interest rate 4.800 % Japanese yen annual interest rate 3.400 % The CIA profit potential is %, which tells Takeshi Kamada that he should borrow and invest in the higher yielding currency, to lock in a covered interest arbitrage (CIA) profit. (Round to three decimal places and select from the drop-down menus.)