Question
1- If the government impose capital controls do you expect that traders can find opportunities of arbitrage? 2- We introduced the equation of the CIP
1- If the government impose capital controls do you expect that traders can find opportunities of arbitrage?
2- We introduced the equation of the CIP and UIP. Can you derive a condition under which the CIP and UIP will be the same. Basically your answer will help you to identify the main difference between the two parity conditions.
3- Derive the relationship between forward premium and exchange rate depreciation.
4- In your own words explain how would you establish that CIP or UIP hold empirically?
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Real Estate Investing Market Analysis Valuation Techniques And Risk Management
Authors: Benedetto Manganelli
1st Edition
3319063960,3319063979
