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Exam Code : N10-007

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The Interest Rate Parity Theorem should work because, when one sells a low interest rate currency to invest in a high interest rate currency and hedges the currency risk:
A. Interest rates are mean reverting, which means the low interest rate will tend to rise and the high interest rate will tend to fall
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Answer: D


A. Option C
B. Option D
C. Option B
D. Option A
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