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] 10.00 If the relation between forward premium(discount) and interest rate differential depicted by the IRP line fails to hold : O a. pressure from

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] 10.00 If the relation between forward premium(discount) and interest rate differential depicted by the IRP line fails to hold : O a. pressure from arbitrageurs should bring exchange rates and interest rates back into line. O b. it may fail to hold due to transactions costs, like the bid ask spread c. it may be due to government-imposed capital controls. O d. all of the above

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