Locational arbitrage explains why prices among banks at different locations will not normally differ by a significant amount.
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Q71: Assume the following information:
Q72: Assume the following information:
U.S. investors have
Q73: If the cross exchange rate of two
Q74: Technology enables more consistent prices among banks
Q75: Cross exchange rates are used to determine
Q77: Assume that the real interest rate in
Q78: Assume locational arbitrage is possible and involves
Q79: Points below the IRP line represent situations
Q80: If quoted exchange rates are the same
Q81: Which of the following is not true
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