Two Methods to Assess Exchange Rate Volatility Are the Volatility

question 73

True/False

Two methods to assess exchange rate volatility are the volatility of historical exchange rate movements and the exchange rate's implied standard deviation from the currency option pricing model.

---

Definitions:

Fact-finding

A process of gathering and analyzing facts related to a specific issue or dispute, often used in arbitration, mediation, or policy-making to inform decisions and resolutions.

Nonbinding Recommendations

Advisories issued by an authority or organization that lack the power of enforceable law but aim to guide behavior or action.

Med-arb

A combination of mediation and arbitration, in which a dispute is first attempted to be resolved through mediation, and if unsuccessful, the same or a different neutral party conducts an arbitration.

Issue-by-issue

A method of dealing with problems or debates one topic at a time, instead of addressing all issues simultaneously.