Which of the Following Is the Best Definition of Unbiased

question 228

Multiple Choice

Which of the following is the best definition of unbiased forward rates (UFR) .

• A) A call or put option that can be exercised on or before its expiration date.
• B) The condition stating that the expected percentage change in the exchange rate is equal to the difference in interest rates.
• C) The condition stating that the current forward rate is an unbiased predictor of the future exchange rate.
• D) Agreements to exchange two securities or currencies.
• E) An agreement to trade currencies based on the exchange rate today for settlement in two days.

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Definitions:

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Personology

The study of the whole person, focusing on the psychological patterns of an individual's lifetime.

Personality Psychology

A branch of psychology that studies personality and its variation among individuals, including traits, behaviors, and the psychological processes behind them.

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Personal narratives that individuals create to give meaning, coherence, and context to their lives.