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    International Financial Management Study Set 1
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    Exam 7: International Arbitrage and Interest Rate Parity
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    Interest Rate Parity (IRP) States That the Foreign Currency's Forward
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Interest Rate Parity (IRP) States That the Foreign Currency's Forward

Question 32

Question 32

True/False

Interest rate parity (IRP) states that the foreign currency's forward rate premium or discount is roughly equal to the interest rate differential between the U.S. and the foreign country.

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