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As presented and discussed in the lecture in week 5, the figure below shows the relation between the interest rate differential (between the home country

As presented and discussed in the lecture in week 5, the figure below shows the relation between the interest rate differential (between the home country - Australia and a foreign country - Japan) and forward premium/discount. Comment on the following statement:

Points below the IRP line such as points A and B represent profit-making opportunities to investors residing in the home country.

As presented and discussed in the lecture in week 5 , the figure below shows the relation between the interest rate differential (between the home country Australia and a foreign country - Japan) and forward premium/discount. Comment on the following statement: "Points below the IRP line such as points A and B represent profit-making opportunities to investors residing in the home country

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