Uncovered Interest Arbitrage

In this numerical instance the arbitrageur is assured to do higher than could be achieved by investing domestically. Text is on the market under the Creative Commons Attribution-ShareAlike License; extra terms may apply. Uncovered Interest Rate Parity Vs Covered Interest Rate Parity Theoretically, that is possible and is known as “arbitrage” – a danger-free approach… Continue reading Uncovered Interest Arbitrage