Covered interest arbitrage moves the market ________ equilibrium because ________.
A.
toward; purchasing a currency on the spot market and selling in the forward market narrows the differential between the two
B.
toward; investors are now more willing to invest in risky securities
C.
away from; purchasing a currency on the spot market and selling in the forward market increases the differential between the two
D.
away from; demand for the stronger currency forces up interest rates on the weaker security