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QUESTION 21 Due to ____, market forces should realign the relationship between the interest rate differential of two currencies and the forward premium (or discount)

QUESTION 21

  1. Due to ____, market forces should realign the relationship between the interest rate differential of two currencies and the forward premium (or discount) on the forward exchange rate between the two currencies.

    forward realignment arbitrage

    triangular arbitrage

    covered interest arbitrage

    locational arbitrage

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