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    International Financial Management Study Set 1
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    Exam 7: International Arbitrage and Interest Rate Parity
  5. Question
    For Points Lying to the Left of the Interest Rate
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For Points Lying to the Left of the Interest Rate

Question 86

Question 86

True/False

For points lying to the left of the interest rate parity (IRP) line, covered interest arbitrage is not possible from a U.S. investor's perspective, but is possible from a foreign investor's perspective.

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