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If the interest rate is lower in the U.S. than in the United Kingdom, and if the forward rate of the British pound is the same as its spot rate:

U.S. investors could possibly benefit from covered interest arbitrage.

British investors could possibly benefit from covered interest arbitrage.

Neither U.S. nor British investors could benefit from covered interest arbitrage.

A and B

Financial Management, Finance

  • Category:- Financial Management
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