Question: According to interest rate parity theory: Select one: a. when domestic interest rates are above the foreign interest rates, the foreign currency will trade at
According to interest rate parity theory: Select one: a. when domestic interest rates are above the foreign interest rates, the foreign currency will trade at a forward discount b. there should be no difference between interest rates across countries c. All options listed are correct d. When interest rate parity holds, it does not matter which currency you select when borrowing or lending e. when the domestic interest rate is below the foreign interest rate, then the foreign currency will trade at a forward premium
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