Question: Question 11 3 pts There may be a relationship between interest rate parity and arbitrage of the fact that currency is trading at discount or

Question 11 3 pts There may be a relationship between interest rate parity and arbitrage of the fact that currency is trading at discount or premium. Which of the following statements is false in regard to interest rate parity. When the interest rate in the foreign country is lower than that in the home country, the forward rate of that country's currency should exhibit a premium. When covered interest arbitrage is not feasible, interest rate parity must hold. When the interest rate in the foreign country is higher than that in the home country, the forward rate of that country's currency should exhibit a discount All of these options are true. When interest rate parity holds, covered interest arbitrage is not possible

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