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Assume that the Swiss interest rate is higher than the U . S . interest rate, and that Interest Rate Parity holds. Which of the

Assume that the Swiss interest rate is higher than the U

.

.

interest rate, and that Interest Rate Parity holds. Which of the following is true?

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Americans who invest in the United States earn the same rate of return as Swiss investors who invest in Switzerland.

Americans who attempt covered interest arbitrage earn the same rate of return as Americans who invest in the United States.

Americans who invest in the United States earn the same rate of return as Swiss investors who attempt covered interest arbitrage.

Americans who attempt covered interest arbitrage earn the same rate of return as Swiss investors who attempt covered interest arbitrage.

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