When using ____, funds are typically tied up for a significant period of time
A)covered interest arbitrage
B)locational arbitrage
C)triangular arbitrage
D)B and C

Question

When using ____, funds are typically tied up for a significant period of time​
A)covered interest arbitrage
B)locational arbitrage
C)triangular arbitrage
D)B and C

Quizplus · Accepted Answer

Covered interest arbitrage involves investing in foreign currency fixed-income securities, which typically requires locking in funds for the duration of the investment period, making them less liquid and tied up for a significant period. Locational and triangular arbitrage, on the other hand, are more focused on exploiting price differences in different markets or currencies and are usually executed quickly.

When Using ____, Funds Are Typically Tied Up for a Significant