Question

2. 2: Multinational Financial Management: Interest Rate Parity The general relationship between spot and forward exchange ratA) DECREASES / APPRECIATES
B) DECREASES / APPRECIATES
C) CANNIBALIZATION / ARBITRAGE / FLOTATION / CONVERSION

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Answer #1

We see that the answers for the blanks are provided below:

1.

Appreciates

2.

Decreases

3.

Arbitrage

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