• 2022-06-26
    Covered interest arbitrage is plausible when the forward premium reflect the interest rate differential between two countries specified by the interest rate parity formula.
  • 内容

    • 0

      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

    • 1

      According to the theory of interest rate parity, if a country raises interest rate, it will cause the local currency to discount in the forward market.

    • 2

      What would the foreign interest rate need to be to achieve interest rate parity if the domestic interest rate is 5%, the forward rate is 1.48 and the spot rate is 1.5? A: 6% B: 8% C: 7% D: 2%

    • 3

      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:

    • 4

      The interest rate can be divided into spot interest rate and forward interest rate according to the time of interest calculation.