Question: please solve it in 10 mins I will thumb you up 3) In covered interest arbitrage the % of forward premium should be equal to

please solve it in 10 mins I will thumb you up

3) In covered interest arbitrage the \% of forward premium should be equal to % of interest differential True False 4) In general terms, the forward rate of the foreign currency will NOT contain a discount (premium) if its interest rate is higher (lower) than the U.S. interest rate. True False 5) In an interest rate parity line graph, the space above the neutral band represents capital outflows. True False

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