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Which of the Following Might Discourage Covered Interest Arbitrage Even

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Which of the following might discourage covered interest arbitrage even if interest rate parity does not exist?​


Definitions:

Entrepreneurship

The process of designing, launching, and running a new business or enterprise, often characterized by innovation, risk-taking, and the pursuit of profit.

Unpredictable

Something or someone that is impossible to foresee or predict due to a high degree of uncertainty or variability.

Social Entrepreneurs

Individuals who initiate innovative solutions to tackle social problems and needs, with a primary goal of creating social value.

Innovative Solutions

Creative and effective responses or methods developed to solve problems or meet new requirements in a novel way.

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