Covered interest arbitrage opportunities in the South African foreign exchange market
The Interest Parity Theory states that in an efficient market, any interest differential between local and foreign sources of finance will be offset by the forward premium/discount. Therefore, opportunities to engage in profitable Covered Interest Arbitrage transactions will be eliminated quickly. T...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
AOSIS
1987-12-01
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| Series: | South African Journal of Business Management |
| Online Access: | https://sajbm.org/index.php/sajbm/article/view/1019 |