AuthorTopic: Uncovered Interest Arbitrage
@2014-07-17 10:47:51
I just have a tough time wrapping my brain around these questions... are there any rules for getting these problems done?

In particular, assuming arb is possible, is it true that one should:

1)borrow the currency with the lowest interest rate, then

2)lend in the higher-rate currency,then

3)convert back at the more attractive of the calculated or forward contract rates?


CFA Discussion Topic: Uncovered Interest Arbitrage

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I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
Martin Rockenfeldt

Martin Rockenfeldt