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For each point on the previous graph, use the table to indicate whether covered interest arbitrage is feasible for that combination of interest rate differential
For each point on the previous graph, use the table to indicate whether covered interest arbitrage is feasible for that combination of interest rate differential and forward premium.
Note: Assume there are no transaction costs.
tableCovered Interest Arbitrage Feasible forPointsForeign Investors No One IRP Domestic InvestorsPoint APoint BPoint CPoint DPoint E
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