Question: _________________ suggests that in equilibrium there should NOT be a strategy that can exploit differences in interest rates, the spot rate, and forward rate between

_________________ suggests that in equilibrium there should NOT be a strategy that can exploit differences in interest rates, the spot rate, and forward rate between two currencies to earn riskless profits.

  • A. Interest rate parity
  • B. The Law of One Price
  • C. Purchasing power parity
  • D. Forward equilibrium theorem

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