If covered interest arbitrage opportunities exist, Multiple Choice interest rate parity does not hold, and...
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If covered interest arbitrage opportunities exist, Multiple Choice interest rate parity does not hold, and arbitragers will be able to make risk-free profits. interest rate parity holds. interest rate parity does not hold. arbitragers will be able to make risk-free profits. interest rate parity holds, and arbitragers will be able to make risk-free profits
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If covered interest arbitrage opportunities exist, Multiple Choice interest rate parity does not hold, and arbitragers will be able to make risk-free profits. interest rate parity holds. interest rate parity does not hold. arbitragers will be able to make risk-free profits. interest rate parity holds, and arbitragers will be able to make risk-free profits 