《国际金融管理International Financial Management》双语课件-05 International Arbitrage And Interest Rate Parity.pptVIP

International Arbitrage AndInterest Rate Parity Chapter Objectives To explain the conditions that will result in various forms of international arbitrage; To explain the concept of interest rate parity, and how it prevents arbitrage opportunities. International Arbitrage Arbitrage can be loosely defined as capitalizing on a discrepancy in quoted prices. In response to the imbalance in demand and supply resulting from arbitrage activity, prices will realign very quickly, such that no further risk-free profits can be made. International Arbitrage Locational arbitrage is possible when a bank’