$($From the worksheet$)$ Josephine, a foreign exchange trader, wants to invest $$7,000$ in a covered interest arbitrage between USD and Thai baht. According to the Arbitrage Rule of Thumb, to get a positive CIA profit, she should $$ because the forward premium$/$discount is $q,$

Spot rate $($B$/$$$)$

$35\mathrm{.}07$

$10-$month forward rate $($B$/$$$)$

$36\mathrm{.}28$

U$.$S$.$ dollar annual interest rate

$2\mathrm{.}15\%$

Thai Baht annual interest rate

$6\mathrm{.}40\%$