Economy, asked by anuragkumar1083, 1 year ago

Difference between covered and uncovered interest rate parity

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Answered by ApexPredator619

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The Difference Between Covered Interest Rate Parity and Uncovered Interest Rate Parity. ... Meanwhile, uncovered interest rate parity involves forecasting rates and not covering exposure to foreign exchange risk – that is, there are no forward rate contracts, and it uses only the expected spot rate.

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