You just entered into a non-deliverable forward contract to sell 10,000,000 South African rands in a year at ZAR10.0000/USD. What would be your gain or loss if the spot rate a year later is ZAR 11.0000/USD? A gain of USD 90,009 A loss of ZAR 250,000 A gain of USD 250,000 A loss of USD 250,000 No gain or loss Amanda Smyth is a foreign exchange dealer for a bank in Texas. She has USD 1,000,000 for a short-term money market investment and wonders if she should invest in U.S. dollars for six months or make a covered interest arbitrage (CIA) investment in the Japanese yen. If she makes the CIA investment, what is her arbitrage profit? Spot Rate JPY120/USD USD 3,487.39 6-mo Forward Rate JPY118.50 /USD USD 6-mo Interest Rate 6% per annum JPY 6-mo Interest Rate 4% per annum Arbitrage profit is not possible USD 5,095.14 USD 2,911.39 USD 7,288.14