Which of the Following Is the Best Definition of Unbiased

question 293

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:

Start-ups

New and emerging companies, typically in the technology sector, that aim to address market needs through innovative products or services.

Top Executives

Individuals occupying the highest level of management in an organization, responsible for making overarching decisions and setting strategic goals.

Entrepreneurs

People who start their own companies, taking on the majority of risks while also reaping the majority of benefits.

Personal Financial Risk

The potential loss of personal assets or wealth due to poor investment decisions or economic downturns.