A transaction that exploits differences in the theoretical and actual values of a foreign currency forward or futures contract is called
A)covered interest arbitrage
B)triangular arbitrage
C)a conversion
D)interest-rate parity
E)none of the above

Question

Quizplus · Accepted Answer

Covered interest arbitrage is a transaction that exploits differences in the theoretical and actual values of a foreign currency forward or futures contract.

A Transaction That Exploits Differences in the Theoretical and Actual