If Covered Interest Arbitrage Opportunities Exist

Multiple Choice

If covered interest arbitrage opportunities exist,

A) interest rate parity does not hold.
B) interest rate parity holds.
C) arbitragers will be able to make risk-free profits.
D) interest rate parity does not hold, and arbitragers will be able to make risk-free profits.
E) interest rate parity holds, and arbitragers will be able to make risk-free profits.