The Unbiased Forward Rate Condition Supports the Idea That the Current

question 75

Multiple Choice

The unbiased forward rate condition supports the idea that the current forward rate is a:

• A) condition where a future spot rate is equal to the current spot rate.
• B) guarantee of a future spot rate at one point in time.
• C) condition where the spot rate is expected to remain constant over a period of time.
• D) relationship between the future spot rates of two currencies at an equivalent point in time.
• E) predictor of the future spot rate at the equivalent point in time.

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