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Danish kroner interest (12-month) idi Hoi Jensen generates a covered interest arbitrage (CIA) profit because she is able to generate an even her interest return in Dan ish kroner than she gives up by selling the proceeds forward at the forward rate 10. The Argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. During that one year period Argentinas inflation rate was 20% on an annualized basis Inflation in the United States during that same period was 2.2% annualized. The PPP exchange rate Ps( /US$ is a. 3.2 b. 1.17 c. 2.2 d. 4.1e. 5.5 f. 6.0 g.0.2
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