If Covered Interest Arbitrage Opportunities Do Not Exist

question 26

Multiple Choice

If covered interest arbitrage opportunities do not exist,

• A) interest rate parity does not hold.
• B) interest rate parity holds.
• C) arbitragers will be able to make risk-free profits.
• D) interest rate parity does not hold, and arbitragers will be able to make risk-free profits.
• E) interest rate parity holds, and arbitragers will be able to make risk-free profits.

---

Definitions:

Nutrients

Substances needed for growth, metabolism, and for other body functions. They are obtained through diet.

Immunity

The body's ability to resist or defend against infection and disease through the immune response.

Undernutrition

A condition resulting from inadequate intake of nutrients, leading to various health issues such as weight loss and muscle wasting.

College Student

An individual who is enrolled and actively pursuing an education at a college or university.