Which of the Following Are Reasons the Forward-Rate Method Is

question 3

Multiple Choice

Which of the following are reasons the forward-rate method is more complex than the spot-rate method in estimating the value?
I.Incomplete data.
II.Extra calculations.
III.The possibility of multiple solutions.
IV.The use of more than one currency in the estimation process.

• A)I and II only.
• B)I and IV only.
• C)II and III only.
• D)III and IV only.

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Definitions:

Plaintiff

The party who initiates a lawsuit or legal action against another party in a court of law.

Material Breach

A significant violation or failure to perform under a contract that harms the aggrieved party and gives them the right to claim damages or terminate the agreement.

Immaterial Breach

A minor violation of a contract that does not significantly harm the interests of the other party or affect the overall performance of the contract.

Mitigate

Mitigate means to make less severe, serious, or painful; in legal and business contexts, it often refers to actions taken to reduce risks or minimize the impact of damages.