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Potvin Potvin
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7 years ago
Which of the following is NOT true with respect to interest rate arbitrage?
A) Interest rate arbitrage maintains the interest rate parity relationship.
B) To arbitrage, you buy and sell something so that you have a positive investment and then earn a return on the transaction.
C) It is rare that similar risk investments in one country earn more than another country after converting money to and from the foreign currency using spot and forward exchange rates.
D) Arbitrageurs help exchange rates adjust to their correct levels rapidly and accurately.
E) All of the above are true.
Textbook 
Corporate Finance Online

Corporate Finance Online


Edition: 1st
Authors:
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BlimpBlimp
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7 years ago
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Pol. Sci. Major
Minoring in Business
Columbia University Sophomore

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Potvin Author
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#2
7 years ago
I posted without any expectations, this surpassed my expectations
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