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Which of the following is(are) correct regarding Interest Rate Parity? I. If the foreign interest rate is less than the domestic interest rate, then the

Which of the following is(are) correct regarding Interest Rate Parity?

I. If the foreign interest rate is less than the domestic interest rate, then the forward rate will be higher than the current spot rate.

II. If the foreign interest rate is more than the domestic interest rate, then the forward rate will be lower than the current spot rate.

III. The difference of foreign and domestic interest rate doesn't affect the forward rate

I only

I and II only

None of above

All of above

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