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Which one the following should be true in order for the Uncovered interest parity to hold? The interest rate for the two currencies should be
Which one the following should be true in order for the Uncovered interest parity to hold?
The interest rate for the two currencies should be equal. | ||
The forward rate should be equal to the current spot rate.
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The forward rate should be an unbiased estimate of the future spot rate. | ||
The current spot rate should be an unbiased estimate of the future spot rate. |
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