Explain fundamental technique for forecasting exchange rates

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Reference no: EM13911820

Respond to following statements.

1. Explain the concept of locational arbitrage and the scenario necessary for it to be plausible.

2. Explain the concept of locational arbitrage and the scenario necessary for it to be plausible.

3. how would you explain the concept of interest rate parity? Please provide the rationale for its possible existence.

4. Explain the fundamental technique for forecasting exchange rates. What are some limitations of using a fundamental technique to forecast exchange rates?

5. Explain the fundamental technique for forecasting exchange rates. What are some limitations of using a fundamental technique to forecast exchange rates?

 

Reference no: EM13911820

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