Because of the Threat of Arbitrage,the Forward Rate Must Equal

question 38

True/False

Because of the threat of arbitrage,the forward rate must equal the spot rate at all times.

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Definitions:

Deference Norms

Social rules that dictate the showing of respect and submission to those in higher authority or status.

Not-Invented-Here Syndrome

A mindset or culture where innovations or solutions developed outside of the organization are undervalued or not utilized.

Out-Group Members

Individuals within a social group or organization who are not considered part of the dominant or mainstream group, often facing different expectations or treatment.

Subgroups

Smaller groups formed within a larger group based on common interests, objectives, or characteristics.