__________________ Holds Because of the Possibility of Covered Interest Arbitrage

question 108

Multiple Choice

__________________ holds because of the possibility of covered interest arbitrage.

• A) Uncovered interest parity.
• B) The International Fisher effect.
• C) Unbiased forward rates.
• D) Interest rate parity.
• E) Purchasing power parity.

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Definitions:

Capital Shares

Equity securities that represent ownership in a corporation, entitling the shareholder to a share of the company's profits.