A bank is in a short euro and long yen position when it has purchased euros and sold yen.
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Q9: The law of one price states that
Q10: Speculators make their profit from situations in
Q11: The following exchange rates are in equilibrium:
Q12: Prices in two currencies are related through
Q14: Interest rate parity (IRP) holds within the
Q15: Prices in two currencies are related through
Q15: Prices in two currencies are related through
Q16: Covered interest arbitrage ensures that the ratio
Q17: The following exchange rates are in equilibrium:
Q18: The actions of arbitrageurs promote the law
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