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Casper​ Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York....

Casper​ Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has ​$1.1 million​ (or its Swiss franc​ equivalent) for a short term money market investment and wonders if he should invest in U.S. dollars for three​ months, or make a CIA investment in the Swiss franc. He faces the following​ quotes: Arbitrage funds available $ 1,100,000 Spot exchange rate (SFr/$) 1.2814 3-month forward rate (SFr/$) 1.2736 U.S. Dollar annual interest rate 4.802 % Swiss franc annual interest rate 3.201 % The CIA profit potential is nothing​%, which tells Casper Landsten he should borrow ▼ Swiss francs U.S. dollars and invest in the ▼ higher lower yielding​ currency, the ▼ Swiss franc U.S. dollar ​, in order to earn covered interest arbitrage​ (CIA) profits.  ​(Round to three decimal places and select from the​ drop-down menus.

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w x 0522 22-03-2020 199+ ENG B 21 X C60 JA B с D E F G Н. 1 к M N o Р 39 40 41 42 Arbitrage funds available 1100000 Differenc

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