SOLVED:Which statement is correct according to interest rate parity (IRP) theory? a. IRP states that differences in interest rates between countries cannot be totally offset by expected changes in exchange rates. b. Forward exchange rates may be locked in today to eliminate foreign exchange risk and ensure investors can profit from moving capital to countries with higher interest rates. c. Inflation differentials between countries affect both interest rates and currency exchange rates. d. The co

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Independent Research Project CAFS