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  3. Study Set
    Derivatives and Risk Management Study Set 2
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    Exam 8: Principles of Pricing Forwards,futures and Options on Futures
  5. Question
    A Transaction That Exploits Differences in the Theoretical and Actual
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A Transaction That Exploits Differences in the Theoretical and Actual

Question 1

Question 1

Multiple Choice

A transaction that exploits differences in the theoretical and actual values of a foreign currency forward or futures contract is called


A) covered interest arbitrage
B) triangular arbitrage
C) a conversion
D) interest-rate parity
E) none of the above

Correct Answer:

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