If interest rate parity (IRP) exists, then triangular arbitrage will not be possible.

Name: If interest rate parity (IRP) exists, then triangular arbitrage will not be possible.
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Quizplus · Accepted Answer

Interest rate parity (IRP) relates to the relationship between interest rates and exchange rates, while triangular arbitrage involves exploiting discrepancies between three currencies. They are separate concepts, and the existence of IRP does not necessarily prevent triangular arbitrage opportunities.

If Interest Rate Parity (IRP) Exists, Then Triangular Arbitrage Will