Answer :
Answer:
Downward pressure on the CAD’s forward rate: If many investors engage in covered interest arbitrage, the demand for CAD forward contracts would increase, leading to a decrease in the forward rate for CAD.
Explanation:
Answer:
Downward pressure on the CAD’s forward rate: If many investors engage in covered interest arbitrage, the demand for CAD forward contracts would increase, leading to a decrease in the forward rate for CAD.
Explanation: