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If U . S . firms attempt to use covered interest arbitrage to capitalize on the high Argentine peso interest rate, what forces should occur?
If US firms attempt to use covered interest arbitrage to capitalize on the high Argentine peso interest rate, what forces should occur?
Spot rate of peso decreases; forward rate of peso decreases.
Spot rate of peso increases; forward rate of peso decreases.
Spot rate of peso increases; forward rate of peso increases.
Spot rate of peso decreases; forward rate of peso increases.
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