Write a short note on the concept of covered interest arbitrage in the

Question

Write a short note on the concept of covered interest arbitrage in the context of financial derives.

17 Oct 2021

Answer :

Word Count : 284

Covered interest arbitrage is a trading strategy that involves buying a currency in one market and selling it in another market, while simultaneously taking out a forward contract or buying an option to hedge against exchange rate risk. The goal of covered interest arbitrage is to profit __________ ______ _________ _______ ___ __________ _______ ______ __________ ______.
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