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If covered interest arbitrage opportunities exist, Multiple Choice interest rate parity does not hold. interest rate parity holds. arbitragers will be able to make risk-free

If covered interest arbitrage opportunities exist,

Multiple Choice

interest rate parity does not hold.

interest rate parity holds.

arbitragers will be able to make risk-free profits.

interest rate parity does not hold, and arbitragers will be able to make risk-free profits.

interest rate parity holds, and arbitragers will be able to make risk-free profits.

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