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the commodity currency interest rate is 4%pa. the terms currency interest rate is 6%pa. suppose you know that speculators on average expect the commodity currency

the commodity currency interest rate is 4%pa. the terms currency interest rate is 6%pa. suppose you know that speculators on average expect the commodity currency to appreciate by 3%pa. this could be explained by

a. covered interest parity

b real interest parity

c uncovered interest parity

d the commodity currency being seen by speculators as the higher risk currency

e the terms currency being seen as the more risk currency

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