Forward Parity Refers To

question 2

Multiple Choice

Forward parity refers to:

• A)the equality of a forward rate to the expected spot rate of the currency.
• B)the difference between a forward rate and the expected spot rate of the currency.
• C)the amount by which the future spot rate of a currency exceeds the forward rate of the currency.
• D)the amount by which the forward rate of a currency exceeds the future spot rate of the currency.

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Definitions:

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