Points Below the IRP Line Represent Situations Where:​

Multiple Choice

Points below the IRP line represent situations where:​

A) ​covered interest arbitrage is feasible from the perspective of domestic investors and results in the same yield as investing domestically.
B) ​covered interest arbitrage is feasible from the perspective of domestic investors and results in a yield above what is possible domestically.
C) ​covered interest arbitrage is feasible from the perspective of foreign investors and results in a yield above what is possible in their local markets.
D) ​covered interest arbitrage is feasible for neither domestic nor foreign investors.