Question: The formula i h - i f = - 5 % for 9 0 day interest rates between two countries. h = home, f =

The formula ih-if=-5% for 90 day interest rates between two countries. h= home, f= foreign. For there to be no covered interest rate arbitrage opportunity, the 90 day forward exchange rate must be
-5% discount
Greater than -5%
5% premium
Less than -5%
The formula i h - i f = - 5 % for 9 0 day

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