The Nominal Interest Rate Parity Condition States That

The nominal interest rate parity condition states that

A) domestic and foreign assets must have nominal returns that are identical, irrespective of the characteristics of the assets.
B) when domestic and foreign assets have identical risk, liquidity, and information characteristics, their nominal returns must also be identical.
C) while nominal returns are equalized across all foreign and domestic assets, real returns may vary widely.
D) while real returns are equalized across all foreign and domestic assets, nominal returns may vary widely.