Use the following information for the next 2 questions:

Spot rate (/$)	108.3
Expected spot rate in 120-day (/$)	104.6
U.S. dollar annual interest rate	2.25%
Japanese yen annual interest rate	3.18%

Jimmy wants to try an uncovered interest arbitrage (UIA). He has access to $21,600 or its yen equivalent. If he starts with borrowing in dollars and deposit in yens:

How much is the cost of his borrowing after 120 days?

	$21,915
	$22,278
	$21,762
	$22,086

How much of an UIA profit/loss does he have after 120 days?

	$839
	-$683
	$1,008
	$740