Uncovered interest rate parity asserts that an investor with dollar deposits will earn the interest rate available on dollar deposits, while an investor holding euro deposits will earn the interest rate available in the eurozone, but also a potential gain or loss on euros depending on the rate of appreciation or depreciation of the euro against the dollar. Rush, A, D Sadeghian and M Wright Swaps and related OTC derivatives combine characteristics of loans with characteristics of traded capital market instruments...
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