Question: question 3 The figure below shows the relation between the interest rate differential (between Australia home country and a foreign country) and forward premium. Comment

question 3

The figure below shows the relation between the interest rate differential (between Australia home country and a foreign country) and forward premium. Comment on the following statement: "Since, at point E, foreign interest rate is lower than home interest rate, Australian investors should not participate in foreign money markets, while foreign investors should make investment in Australian money market." was

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