Find principal and interest forward

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Casper Landsten-Thirty Days Later. Casper Landsten once again has $0.9 million (or its Swiss franc equivalent) to invest for three months. He now faces the following rates. Should he enter into a covered interest arbitrage (CIA) investment? Arbitrage funds available $ 900,000 Spot exchange rate (SFr/$) 1.3392 3-month forward rate (SFr/$) 1.3287 U.S. Dollar annual interest rate 4.748 % Swiss franc annual interest rate 3.623 % The CIA profit potential is %, which tells Casper Landsten he should borrow and invest in the yielding currency, the and then sell the principal and interest forward three months locking in a CIA profit. (Round to three decimal places and select from the drop-down menus.)

Reference no: EM133062772

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