Differences among forward rates assume that the 30-day, Ask an Expert

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Differences among forward rates. Assume that the 30-day forward premium of the euro with the British pound is -1%, while the 90-day forward premium of the euro is 2%. Explain the likely interest rate conditions that would cause these premiums. Does this ensure that covered interest arbitrage is worthwhile?

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Financial Management, Finance

Category:- Financial Management
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