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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 $)$ :

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

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

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

d $.$ 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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