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    International Financial Management
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    Exam 7: International Arbitrage and Interest Rate Parity
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    The Larger the Degree by Which the Foreign Interest Rate
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The Larger the Degree by Which the Foreign Interest Rate

Question 21

Question 21

True/False

The larger the degree by which the foreign interest rate exceeds the home interest rate, the larger will be the forward discount of the foreign currency specified by the interest rate parity (IRP) formula.

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