In Equilibrium, the Interest Parity Condition Requires That

Multiple Choice

In equilibrium, the interest parity condition requires that:

A) all rates of returns will equalize.
B) all spot and forward rates will equalize.
C) the home interest rate minus its expected rate of currency depreciation (against the foreign country) will equal the foreign interest rate on similar assets.
D) all rates of returns and forward rates will equalize.