V

Vijay Sangwan • 28.62K Points
Instructor II

Q. Covered interest arbitrage involves both

(A) the purchase of a foreign asset and a forward contract in the market for foreign exchange.
(B) the purchase of a domestic asset and a spot contract in the market for foreign exchange.
(C) the sale of a foreign asset and the purchase of a forward contract in the market for foreign exchange.
(D) the sale of domestic stocks and the purchase of foreign bonds.

Correct Answer - Option(D)

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