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- Topic: Uncovered Interest Arbitrage
| Author | Topic: Uncovered Interest Arbitrage |
|---|---|
| REITboy @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? Thanks! -G |
CFA Discussion Topic: Uncovered Interest Arbitrage
I was very pleased with your notes and question bank. I especially like the mock exams because it helped to pull everything together.
