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15:36
YouTube
Department of Economics
Interest Parity
This clip derives the uncovered interest parity condition, or UIP, through a no-arbitrage argument. The clip abstracts from risk premia and other complications. In foreign exchange market equilibrium, the return to financial investment in an asset denominated in "home" currency must be equal to the sum of the return to financial investment ...
47K views
Feb 7, 2012
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