The covered interest differential is _____ the sum of the forward premium on a currency and the interest rate differential.
A: approximately equal to
B: more than
C: exactly equal to
D: less than
A: approximately equal to
B: more than
C: exactly equal to
D: less than
举一反三
- The __________ differential is approximately equal to the forward premium on a currency plus the interest rate differential. A: covered interest B: uncovered interest C: covered currency D: uncovered currency
- The covered interest differential is _____ the sum of the forward premium on a currency and the interest rate differential.
- Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula.
- According to the interest rate parity theory, when the forward foreign exchange rate is premium, it means that the domestic interest rate( ) A: is equal to the foreign exchange rate B: lower than foreign exchange rates C: higher than foreign exchange rates D: Not sure
- 中国大学MOOC: Assume that the interest rate in the home country of Currency X is much higher than the U.S. interest rate. According to interest rate parity, the forward rate of Currency X: