The Replication Method Identifies the Price of a USD/GBP Forward

question 20

Multiple Choice

The replication method identifies the price of a USD/GBP forward rate as a function of

• A)The expected future USD/GBP exchange rate,the GBP interest rates,and the USD interest rates
• B)The spot USD/GBP exchange rate and the volatility of the spot USD/GBP exchange rate
• C)The spot USD/GBP exchange rate,the GBP interest rates,and the USD interest rates
• D)Only the spot USD/GBP exchange rate

---

Definitions:

Weight Reduction

The process or goal of reducing body weight, typically through diet, exercise, or surgical means, often for health or aesthetic reasons.

Flu Immunizations

Vaccinations given to prevent influenza, recommended annually to protect individuals and communities from the flu virus.

Public Communication

Interaction of one individual with large groups of people.

Interpersonal Communication

The process of exchanging information, ideas, or feelings between two or more people through verbal or non-verbal means.