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Due to ____, Market Forces Should Realign the Cross Exchange

Question 87

Multiple Choice

Due to ____, market forces should realign the cross exchange rate between two foreign currencies based on the spot exchange rates of the two currencies against the U.S. dollar.​


A) ​forward realignment arbitrage
B) ​triangular arbitrage
C) ​covered interest arbitrage
D) ​locational arbitrage

Correct Answer:

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