MCQOPTIONS
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| 1. |
Due to _______, market forces should realign the relationship between the interest rate differential of two currencies and the forward premium (or discount) on the forward exchange rate between the two currencies. |
| A. | forward realignment arbitrage |
| B. | covered interest arbitrage |
| C. | triangular arbitrage |
| D. | locational arbitrage |
| Answer» D. locational arbitrage | |