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Difference in interest rates

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Reference no: EM133306858

Complete each of the following statements.

1. If the forward premium is equal to the difference in the nominal rates of interest between two countries_________________ arbitrage is not feasible.

2. The theory of international Fisher effect is an application of the theory of_____________ .

3. According to________________ , the forward premium will be determined by the difference in interest rates between the two countries.

Reference no: EM133306858

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