Question: What is the difference between Covered Interest Arbitrage ( CIA ) & Uncovered Interest Arbitrage ( UIA ) ? UIA uses forward rate, the outcome

What is the difference between Covered Interest Arbitrage (CIA) &
Uncovered Interest Arbitrage (UIA)?
UIA uses forward rate, the outcome is NOT guaranteed.
CIA uses forward rate; the outcome is guaranteed.
UIA uses expected future spot rate, the outcome is guaranteed.
CIA uses expected future spot rate, but the outcome is NOT guaranteed.
What is the difference between Covered Interest Arbitrage (CIA) & Uncovered

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