An investor who notices that interest rates are much lower in Japan than in the United States

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An investor who notices that interest rates are much lower in Japan than in the United States borrows in Japan and invests the proceeds in the United States. This is called uncovered interest arbitrage, but is it really arbitrage? Why or why not?

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Introduction to Corporate Finance

ISBN: 978-0324657937

2nd edition

Authors: Scott B. Smart, William L Megginson

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Question Posted: May 13, 2015 06:11 AM

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An investor who notices that interest rates are much lower in Japan than in the United States

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Introduction to Corporate Finance

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