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Michael sees that US investors are benefiting from covered interest rate arbitrage due to high interest rates on euros. As a finance graduate, he knows

Michael sees that US investors are benefiting from covered interest rate arbitrage due to high interest rates on euros. As a finance graduate, he knows that there are forces from this covered interest arbitrage activity. He claims. that the percentage change in the spot rate will be similar as that in the forward rate. True or False?

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