If Interest Rate Parity Exists, Then ____ Is Not Feasible

question 77

Multiple Choice

If interest rate parity exists, then ____ is not feasible.​

• A) ​forward realignment arbitrage
• B) ​triangular arbitrage
• C) ​covered interest arbitrage
• D) ​locational arbitrage

---

Definitions:

Fertilization

A stage in reproduction during which an egg and a sperm fuse to create a single cell, called a zygote.

Fallopian Tube

A pair of tubes along which eggs travel from the ovaries to the uterus in the female reproductive system.

Ovum

A female reproductive cell or egg that, when fertilized by a sperm, can develop into a new organism.

Mercury

A chemical element with symbol Hg and atomic number 80, known as quicksilver, which is a liquid metal at room temperature.