Arbitrage eliminates forward discounts and premiums across the markets of a single currency.

Name: Arbitrage eliminates forward discounts and premiums across the markets of a single currency.
Brand: Quizplus
Rating: 4.9 (44 reviews)

Question

Quizplus · Accepted Answer

Arbitrage does not eliminate forward discounts and premiums; it exploits differences in prices, including those in currency markets, to make a profit. Forward discounts and premiums are influenced by interest rate differentials, expectations, and other factors, not solely by arbitrage opportunities.

Arbitrage Eliminates Forward Discounts and Premiums Across the Markets of a Single