This is a summary of links featured on Quantocracy on Wednesday, 03/24/2021. To see our most recent links, visit the Quant Mashup. Read on readers!
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In Search of Lost Covered Interest Parity [Quant Dare]The puzzle of Covered Interest Parity (CIP) began in 2008 and has remained as such for many years. There have been multiple attempts to solve the mystery but none of them has reached a complete consensus and the debate is still ongoing. Nevertheless, the discussion has lead to a fair amount of interesting insights. CIP is one of the backbones of international finance and the basic tool for FX