Question: What is interest arbitrage? Uncovered interest arbitrage? Covered interest arbitrage? How is interest arbitrage covered in the forward market? Why does the net gain from

What is interest arbitrage? Uncovered interest arbitrage? Covered interest arbitrage? How is interest arbitrage covered in the forward market? Why does the net gain from covered interest arbitrage tend to diminish as covered interest arbitrage continues?

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Interest arbitrage is me flow of liquid capital of shortterm period like three months into other counties to earn higher returns Uncovered interest ar... View full answer

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