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Which of the following should be eliminated if Interest Rate Parity holds? 1. Short-run exposure to exchange rate risk. 2. Triangle arbitrage opportunities. 3. Translation

Which of the following should be eliminated if Interest Rate Parity holds?

1. Short-run exposure to exchange rate risk.

2. Triangle arbitrage opportunities.

3. Translation exposure to exchange rate risk.

4. Political risk.

5. Covered interest arbitrage opportunities.

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