Covered Interest Parity
{"Image DocumentName": "Covered Interest Parity", "Image ImageDescription": "Covered interest parity relates interest rates across countries and the rate of change between forward exchange rates and the spot exchange rate: R  = R\u20ac + (F /\u20ac - E /\u20ac)/E /\u20ac where F /\u20ac is the forward exchange rate. It says that rates of return on dollar deposits and covered foreign currency deposits are the same. How could you make easy, risk-free money in the foreign exchange markets if covered interest parity did not hold? Covered positions using the forward rate involve little risk. Copyright \u00a9 2006 Pearson Addison-Wesley. All rights reserved.", "Image XResolution": "37", "Image YResolution": "37", "Image ResolutionUnit": "Pixels/Centimeter", "Image Software": "SlidePlayer", "Image YCbCrPositioning": "Centered"}