If the IFE theory holds, that means that covered interest arbitrage is not feasible.

Name: If the IFE theory holds, that means that covered interest arbitrage is not feasible.
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The International Fisher Effect (IFE) theory relates to the expected change in exchange rates based on interest rate differentials, while covered interest arbitrage involves exploiting differences in interest rates between countries using forward contracts. They address different aspects of international finance.

If the IFE Theory Holds, That Means That Covered Interest