24 Differences among forward rates. Assume that the 30-day forward premium of the euro with the British

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24 Differences among forward rates. Assume that the 30-day forward premium of the euro with the British pound is 1%, while the 90-day forward premium of the euro is 2%. Explain the likely interest rate conditions that would cause these premiums.

Does this ensure that covered interest arbitrage is worthwhile?

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Exploring Economics

ISBN: 9780324395464

4th Edition

Authors: Robert L. Sexton

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