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According to interest rate parity ( IRP ) : a . the future spot rate differs from the current spot rate by a sufficient amount

According to interest rate parity

(

IRP

)

.

the future spot rate differs from the current spot rate by a sufficient amount to offset the inflation differential between two currencies.

.

the future spot rate differs from the current spot rate by a sufficient amount to offset the interest rate differential between two currencies.

.

the forward rate differs from the spot rate by a sufficient amount to offset the inflation differential between two currencies.

.

the forward rate differs from the spot rate by a sufficient amount to offset the interest rate differential between two currencies.

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