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

The figure below shows the relation between the interest rate differential

The figure below shows the relation between the interest rate differential (between Australia - home country and a foreign country) and forward premium/discount. Comment on the following statement: "As point E deviates from the IRP line, it presents profit-making opportunities to both Australian and foreign investors." The figure below shows the relation between the interest rate differential (between Australia - home country and a foreign country) and forward premium/discount. Comment on the following statement: "As point E deviates from the IRP line, it presents profit-making opportunities to both Australian and foreign investors

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