The Principle of Interest Rate Parity Asserts That The

Multiple Choice

The principle of interest rate parity asserts that the:

A) relative spot exchange rates determine the relativity between the forward exchange rates and spot rates.
B) relativity between spot and forward exchange rates reflects the interest rate differentials between countries.
C) relative forward exchange rates determine the relativity between the spot exchange rates and the forward interest rate.
D) relative forward exchange rates determine the relativity between the forward exchange rates and forward interest rates.