"CIA" to opportunities profit manifest in a currency's forward premium or forward discount that can be exploited by borrowing one currency, converting it to another, investing the latter, and then unwinding everything in the forward market. Question 19 options: a) True b) False Question 20 (1 point) The "no-arbitrage principal" tates that if a currency is trading at a forward discount that currency's interest rate must exceed the home currency by exactly the same percent. Question 20 options: a) True b) False Question 21 (1 point) The short-term interest rate in South Africa is 8%. The short term-interest rate in the home currency (not S. Africa) is 5%. The South African forward rate should exhibit a premium of about 3%. Question 21 options: a) True b) False Question 22 (1 point) The short-term interest rate in Pakistan is 10%; the short term interest rate in India is 5%. The Pakistani rupee exhibits a forward discount of 4% relative to the Indian rupee. From a trader's viewpoint, covered interest arbitrage is possible. Question 22 options: a) True b) False