Examlex
____ controls the size of the arc.
Interest Rate Parity
A theory stating that the difference in interest rates between two countries is equal to the expected change in exchange rates between those countries' currencies.
Covered Interest Arbitrage
An investment strategy that involves taking advantage of the interest rate differential between two countries while hedging against exchange rate risk.
Risk-Free Profits
Profits made through investment strategies that are supposed to incur no risk to the investor.
Interest Rate Parity
A financial theory stating that the difference in interest rates between two countries will be offset by changes in the exchange rate between their currencies.
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