Arbitrage hedging and speculation the foreign exchange market pdf
By: Biamn On: 28.05.2017
In most cases, the quotation on the local exchanges is done electronically by high-frequency traders , taking into consideration the home price of the stock and the exchange rate. If CIP arbitrage is conducted by global banks borrowing and lending in the respective Libor markets, then a rise in counterparty credit risks in the interbank markets, typically captured using Libor-OIS spreads, could result in CIP deviations...