Question: Please answer the following: Question 7 (1 point) One theory that is useful states that the forward premium or discount should be equal and opposite

Please answer the following:

Question 7 (1 point) One theory that is useful states that the forward premium or discount should be equal and opposite in sign to the difference in the national interest rates for securities of the same maturity. This theory is known as: The forward rate theory The exchange rate theory The interest rate parity theory The covered interest arbitrage theory Question 8 (1 point) A wide bid/ask spread could indicate which of the following? The presence of arbitrageurs Large volume transactions are taking place O Frequent trading of a currency ONone of the above

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