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Which of the following variables used in the covered interest arbitrage formula is correctly defined? R_FC: Foreign country real interest rate F_t: Future inflation rate
Which of the following variables used in the covered interest arbitrage formula is correctly defined? R_FC: Foreign country real interest rate F_t: Future inflation rate at Time t. R_US: U.S. real risk-free interest rate S_0: Current spot rate expressed in dollars per unit of foreign currency F_1: 360-day forward rate
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