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    International Financial Management Study Set 1
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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 1

Question 1

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 the above

Correct Answer:

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