Triangular arbitrage tends to force a relationship between the interest rates of two countries and their forward exchange rate premium or discount.

Name: Triangular arbitrage tends to force a relationship between the interest rates of two countries and their forward exchange rate premium or discount.
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Question

Quizplus · Accepted Answer

Triangular arbitrage involves exploiting discrepancies in currency exchange rates across three currencies, not interest rates or forward exchange rate premiums/discounts.

Triangular Arbitrage Tends to Force a Relationship Between the Interest