what is interest rate arbitrage?
Answers
Answered by
0
Explanation:
Covered interest rate arbitrage is the practice of using favorable interest rate differentials to invest in a higher-yielding currency, and hedging the exchange risk through a forward currency contract.
hope got
Answered by
0
Answer:
(also interest rate arbitrage) a method of making a profit by buying currency in one place and selling it in another place, making use of the difference in interest rates in the two places: A tax on international transactions was introduced to reduce possible gains from interest arbitrage and exchange-rate movements.
Similar questions