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Question: Casper Landsten-Thirty Days Later. One month after the events described in Problems I and II, Casper Landsten once again has $1 million (or its Swiss franc equivalent) to invest for three months. He now faces the following rates. Should he again enter into a covered interest arbitrage (CIA) investment?

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Problems II: Casper Landsten-UIA (B). Casper Landsten, using the same values and assumptions as in Problem I, decides to seek the full 4.800% return available in U.S. dollars by not covering his forward dollar receipts- an uncovered interest arbitrage (UIA) transaction. Assess this decision.

Problem I: Casper Landsten-CIA (A). Casper Landsten is a foreign exchange trader for a bank in New York. He has $1 million (or its Swiss franc equivalent) for a shortterm money market investment and wonders whether he should invest in U.S. dollars for three months or make a CIA investment in the Swiss franc. He faces the following quotes:

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