Question: If the covered interest differential is zero, then Multiple Choice covered international investments will be profitable once we add in the interest earned on the

If the covered interest differential is zero, then
Multiple Choice
covered international investments will be profitable once we add in the interest earned on the foreign bonds.
the overall covered return on a foreign-currency investment equals the return on a comparable domestic-currency investment.
a currency is at a forward premium by as much as its interest rate is higher than the interest rate in the other country.
covered interest rate parity has not yet been reached. market and selling euros in 30 days at the future spot rate.

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