covered interest rate parity การใช้

• Economists have found empirical evidence that covered interest rate parity generally holds, though not with precision due to the effects of various risks, costs, taxation, and ultimate differences in liquidity.
• The following equation represents covered interest rate parity, a condition under which investors eliminate exposure to foreign exchange risk ( unanticipated changes in exchange rates ) with the use of a forward contract & ndash; the exchange rate risk is effectively " covered ".
• Economists Wai-Ming Fong, Giorgio Valente, and Joseph K . W . Fung, examined the relationship of covered interest rate parity arbitrage opportunities with market liquidity and credit risk using a dataset of risk premia, the researchers demonstrated that small residual arbitrage profits accrue only to those arbitrageurs capable of negotiating low transaction costs.