Hi,

Could you please help me answer the 4 questions below? I need the correct answer, and if possible, a brief explanation. Thanks very much :)

t=7039549&cmid=228848# com IE Question 5 We would generally expect covered interest rate parity to exist in markets, but when we have covere interest arbitrage: Select one: covered A. the arbitrageur trades only in the spot currency exchange markets. B. the arbitrageur trades only in the forward currency exchange markets. C. all of the above are true. D. the market must be out of equilibrium. Question 6 Differential rates of inflation between two countries are thought by a number of prominent academics and market players to be: Select one: A. offset over time through the effect of relative Purchasing Power Parity. B. offset immediately through the effects of absolute Purchasing Power Parity. C. offset over time through the effects of absolute Purchasing Power Parity. D. offset immediately through the effect of relative Purchasing Power Parity.Question 9 For arbitrage opportunities to be practical: Select one: A. participants must have access to the previous day's closing prices. B. speculators must be able to execute the arbitrage trades based on the credit standing of the bank where they hold their accounts. C. all of the above must be true. D. participants must have instant access to executing trades. Question 10 try to profit from trading in the market itself, whilst use the foreign exchange market as incidental to the underlying commercial or investment transaction. Select one: A. Speculators and arbitragers; corporate treasurers 3. Foreign exchange brokers; corporate treasurers C. Corporate treasurers: speculators and arbitragers D. Central banks; speculators and arbitragers