The covered interest differential is _____ the sum of the forward premium on a currency and the interest rate differential.
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. A: approximately equal to B: more than C: exactly equal to D: less than
- Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula.
- 7. If the expected future spot exchange rate value of the foreign currency decreases, with the interest rate differential unchanged, the current spot exchange rate value of the domestic currency:
- According to the interest rate parity theory, the forward currency of countries with a lower interest rate will appreciate.