Casper Landsten-UIA (B). Casper Landsten is a foreign exchange trader for a bank in New York. Using the values and assum

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Casper Landsten Uia B Casper Landsten Is A Foreign Exchange Trader For A Bank In New York Using The Values And Assum 1 (114.12 KiB) Viewed 32 times

Casper Landsten-UIA (B). Casper Landsten is a foreign exchange trader for a bank in New York. Using the values and assumptions below, he decides to seek the full 4.805% return available in U.S. dollars by not covering his forward dollar receipts an uncovered interest arbitrage (UIA) transaction. Assess this decision. Arbitrage funds available $ 1,000,000 Spot exchange rate (SFr/$) 1.2808 3-month forward rate (SFr/$) 1.2737 Expected spot rate in 90 days (SFr/$) 1.2701 U.S. Dollar annual interest rate 4.805 % Swiss franc annualinterest rate 3.204 % The uncovered interest arbitrage (UIA) profit amount is $ (Round to the nearest cent.)