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QUESTION
The interest rate parity formula can be written as (I). (1 + c) = (1 + Kdomestic)/ (1 + Kforeign) (II). (1 + Kforeign) (1 + Kdomestic) = (1 + c)...
The interest rate parity formula can be written as (I). (1 + c) = (1 + Kdomestic)/ (1 + Kforeign) (II). (1 + Kforeign) (1 + Kdomestic) = (1 + c) (III). (1 + c) (1 + Kdomestic) = (1 + Kforeign) (IV). (1 + c) - (1 + Kdomestic) = (1 + Kforeign)
Question 25 options:
a) II
b) III
c) I
d) IV
