Hello I need assistance answering this multiple choice quest

Hello,

I need assistance answering this multiple choice question.

If interest rate parity does not hold, covered interest arbitrage may be possible. Before deciding whether to conduct covered interest arbitrage, which of the following factors does not need to be investigated? O a. Transaction costs b. Currency restrictions O c. Taxes d. Political risk O e. All of these choices should be considered.

Solution

All of these choices should be considered

since it involves a foreign currency external factors could wipe out the gains