Question
You spotted a forward rate that implies Interest Rate Parity (IRP) does not hold, it means: A. there is usually a high degree of inflation
You spotted a forward rate that implies Interest Rate Parity (IRP) does not hold, it means:
A. there is usually a high degree of inflation in at least one country.
B. the financial markets are in equilibrium.
C. there are opportunities for covered interest arbitrage.
D. inflation in both countries are high
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Foundations In Personal Finance
Authors: Dave Ramsey
1st Edition
0981683967, 978-0981683966
