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    International Financial Management Study Set 1
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    Exam 7: International Arbitrage and Interest Rate Parity
  5. Question
    Due to ____, Market Forces Should Realign the Spot Rate
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Due to ____, Market Forces Should Realign the Spot Rate

Question 53

Question 53

Multiple Choice

Due to ____, market forces should realign the spot rate of a currency among banks.


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

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