In the expressions above, R* is the foreign currency i,t
interest rate for borrowing or lending for i periods at
time, t; St is the exchange rate at time t, expressed in units
of domestic currency per foreign currency (i.e., as a direct
quote) and Fi,t is the forward rate at time t for purchasing
foreign currency i periods in the future.
As Richard Levich discusses elsewhere in this Handbook,
IRP in its canonical form is equivalent to the proposition
that alternatives 1 and 2 should be equal.
Equation (15.1) summarizes this equality