Question

1. Covered interest rate parity (CIP) benefitical to which investors? And is there any

differences before and after the global financial crisis in 2007-2009?

2. Problem of using LIBOR as a baseline analysis

3. What’s the explanation for the CIP violations? Can investors earn arbitrage profits? And

there limitations?

Answer 1

3.CIP Violation : CIP as form of Carrier Identification Plate violation.

It indicates if all terms & condistions doesn't allow the ticketing of another airlines fare on AI document,then this will be considered as CIP violation.FERC / NERC CIP needs energy and utility companies to focuson  their cyber assets and electronic security perimeter systems.NERC CIP standards background & basics.

Yes investors can earn arbitrage profit while buing a security from the market & selling to another market at a higher price then only investor can earn profit .

2. The primary issue when using LIBOR is banks manipulate false interest rates in market & make their profit margin.This fraudalant not detected for past years but after the LIBOR may be phased out alternate rate setting this fraudalant not happen.

1. Covered interest rate parity (CIP) benefitical to Chaina.