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
A: covered interest
B: uncovered interest
C: covered currency
D: uncovered currency
举一反三
- The covered interest differential is _____ the sum of the forward premium on a currency and the interest rate differential.
- 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:
- 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: