uncovered interest rate parity

  1. S

    Uncovered interest rate parity

    Hi all I have to proof that the uncovered interest rate parity is hold if c_2(s)=E_1[c_2]. The two first order conditions are given as: Then I simpliefied this: I think, if the Cov-Term equals zero, the UIP is fullfilled. Could it be that the Cov-Term is zero, since our...