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Basic Question 8 of 20

______ is the difference between the domestic interest rate and the hedged or "covered" foreign rate.

A. Bid-ask spread.
B. Covered interest differential.
C. Interest rate parity.

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I used your notes and passed ... highly recommended!
Lauren

Lauren

Learning Outcome Statements

explain spot and forward rates and calculate the forward premium/discount for a given currency;

calculate the mark-to-market value of a forward contract;

CFA® 2025 Level II Curriculum, Volume 1, Module 8.