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Interest Rate Parity Calculator

Interest Rate Parity Formulas:
Covered IRP: (1 + i₁) = (F/S) Ɨ (1 + iā‚‚)
Uncovered IRP: (1 + i₁) = (Eā‚‘/S) Ɨ (1 + iā‚‚)
Where: i = interest rate, F = forward rate, S = spot rate, Eā‚‘ = expected exchange rate
Covered IRP
Uncovered IRP
Arbitrage Analysis

Covered Interest Rate Parity

Uncovered Interest Rate Parity

Arbitrage Opportunity Analysis