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Basic Question 8 of 20
______ is the difference between the domestic interest rate and the hedged or "covered" foreign rate.
B. Covered interest differential.
C. Interest rate parity.
A. Bid-ask spread.
B. Covered interest differential.
C. Interest rate parity.
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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach
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.