Economy, asked by mbijleghar, 10 months ago

what is covered and uncovered arbitrage?

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Answered by queensp73
1

Answer:

Uncovered interest arbitrage is an arbitrage trading strategy whereby an investor capitalizes on the interest rate differential between two countries. Unlike covered interest arbitrage, uncovered interest arbitrage involves no hedging of foreign exchange risk with the use of forward contracts or any other contract.

Explanation:

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