Problem 6-7 (algorithmic) Question Help * Kamada: CIA Japan (A). Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $5,050,000 or its yen equivalent, in a covered interest arbitrage between U.S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Is CIA profit possible? If so, how? $ 5,050,000 Arbitrage funds available Spot rate (IS) 180-day forward rate (S) U.S. dollar annual interest rate Japanese yen annual interest rate 118.52 117.83 4.807 % 3.394 % olelorice The CIA profit potential is currency, drop-down menus.) %, which tells Takeshi Kamada that he should borrow V and invest in the higher yielding V, to lock in a covered interest arbitrage (CIA) profit. (Round to three decimal places and select from the