Question: Would like to understand the answer to this. Assume it. re profitable to save in the home country and borrow in the foreign lzwise around

Would like to understand the answer to this.

Assume it. re profitable to save in the home country and borrow in the foreign lzwise around the lake), then forward market arbitrage will make the home country's currency lose value in both the spot and forward mark .7 the home country's currency gain value in both the spot and forward markets. the home country's currency lose value in the spot market and gain value in the forward market. the home country's currency gain value in the spot market and lose value in the forward market. CONTINUE

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