Based on the Theory of Interest Rate Parity, the Percentage

question 344

Multiple Choice

Based on the theory of interest rate parity, the percentage forward premium or discount is approximately equal to the difference in _______ interest rates.

• A) Nominal risk-free.
• B) Real risk-free.
• C) Nominal risky.
• D) Real risky.
• E) Inflation-adjusted.

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Definitions:

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