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    International Financial Management
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    Exam 7: International Arbitrage and Interest Rate Parity
  5. Question
    Which of the Following Might Discourage Covered Interest Arbitrage Even
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Which of the Following Might Discourage Covered Interest Arbitrage Even

Question 61

Question 61

Multiple Choice

Which of the following might discourage covered interest arbitrage even if interest rate parity does not exist?


A) transaction costs
B) political risk
C) differential tax laws
D) All of these are correct.

Correct Answer:

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