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Cash and carry arbitrage explains the determination of

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International Finance and Treasury
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Cash and carry arbitrage explains the determination of

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Correct Answer: Option A
Cash and carry arbitrage explains the determination of Forward Rates for currencies. Cash-and-carry-arbitrage is a market neutral strategy combining the purchase of a long position in an asset such as a stock or commodity, and the sale (short) of a position in a futures contract on that same underlying asset.
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