If there were no difference between the spot and forward


Explain why the currency of Country A, whose interest rates are twice as great as those in Country B, must trade at a forward discount. If there were no difference between the spot and forward exchange rates in this interest rate environment, what arbitrage trade could be constructed to take advantage of the situation?

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Portfolio Management: If there were no difference between the spot and forward
Reference No:- TGS01229272

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