Question
The US interest rate is i$ = 3 % for the next year and the UK interest rate is i = 6%. If I borrow
The US interest rate is i$ = 3 % for the next year and the UK interest rate is i = 6%. If I borrow money in UK and invest in US for the next year, uncovered IRP (carry trade) suggests that I will make money if and only if:
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Guide To Finance Theory And Application Portfolio Mathematics
Authors: Professional Risk Managers' International Association (PRMIA)
1st Edition
0071731814
