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The Covered Interest Rate Parity Condition Can Be Stated as Follows

Question 23

Multiple Choice

The covered interest rate parity condition can be stated as follows: The interest rate on dollar deposits equals the interest rate on euro deposits ________ the forward ________ on dollars against euros.


A) plus; premium
B) plus; discount
C) times; premium
D) minus; premium
E) minus; discount

Correct Answer:

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