MCQOPTIONS
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MCQOPTIONS
| 1. |
Covered interest arbitrage involves both |
| A. | the purchase of a foreign asset and a forward contract in the market for foreign exchange. |
| B. | the purchase of a domestic asset and a spot contract in the market for foreign exchange. |
| C. | the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange. |
| D. | the sale of domestic stocks and the purchase of foreign bonds. |
| Answer» E. | |