If the Spot Exchange Rate Between Lire and Dollars Is

question 7

Essay

If the spot exchange rate between lire and Dollars is L2600/$(Canadian) and the forward exchange rate is L2550/$, what would you predict to be the expected future spot rate? Is the lira appreciating or depreciating against the Dollar?

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Definitions:

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Being trustworthy or believable, especially in the context of sources of information or evidence.

Unbiased

Showing no prejudice or favoritism, maintaining impartiality.

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