Question: Question 10 (1 point) Covered arbitrage ensures that: 1) The forward rate is driven into equality with the expected future spot rate 2) The expected

Question 10 (1 point) Covered arbitrage ensures that: 1) The forward rate is driven into equality with the expected future spot rate 2) The expected future spot rate equals, on average, the subsequent spot rate a The differential between domestic and foreign interest rates is driven into equality with the forward discount/premium 4) All opportunities for speculative profits in foreign currency markets are eliminated 5) None of the given answers

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