In the Expected Rate of Depreciation of the Home Currency) $\frac { e } { E ( e ) }$

question 10

Multiple Choice

in the expected rate of depreciation of the home currency)
12. The term xa in the textbook is defined as the expected rate of appreciation of the foreign currency. A mathematical way to express this definition [where e is the spot rate of the foreign currency and E(e) is the expected future spot rate of the foreign currency] is __________.

• A) E(e) - e
• B)
• \(\frac { e } { E ( e ) }\)
• C)
• \(\frac { E ( e ) - 1 } { e }\)
• D)
• \(\frac { E ( e ) - e } { e - 1 }\)

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