How is interest arbitrage covered in the forward market


Problem

What is interest arbitrage? uncovered interest arbitrage? covered interest arbitrage? How is interest arbitrage covered in the forward market? Why does the net gain from covered interest arbitrage tend to diminish as covered interest arbitrage continues?

The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.

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International Economics: How is interest arbitrage covered in the forward market
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