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what is covered interest arbitrage?

2007-11-09 11:41:03 · 1 answers · asked by kimberly N 1 in Education & Reference ➔ Higher Education (University +)

1 answers

It is when you purchase a security that pays off in a foreign currency and then hedgre the FX risk using forward contracts or futures contracts.

2007-11-09 11:48:10 · answer #1 · answered by Ranto 7 · 0⤊ 0⤋

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