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Copenhagen Covered (A)

Finance

Copenhagen Covered (A). Heidi HOi Jensen, a foreign exchange trader at JPMorgan Chase, can invest $5.05 million, or the foreign currency equivalent of the bank's short-term funds, in a covered interest arbitrage with Denmark. Using the following quotes, can Heidi make a covered interest arbitrage (CIA) profit? 
Arbitrage funds available $5,050,000 Spot exchange rate (kr/$) 6.1716 3-month forward rate (kr/$) 6.1977 U.S. dollar 3-month interest rate 3.100% Danish kroner 3-month interest rate 5.050% 
 

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