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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

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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