If interest rate parity is satisfied and the interest rate in the U. S. is greater than the interest rate in Japan we can conclude that:

If interest rate parity is satisfied and the interest rate in the U. S. is greater than the interest rate in Japan we can conclude that:   the yen trades at a forward premium. the yen trades at a forward discount. The term “covered” in covered interest arbitrage indicates that:   the default risk is […]