If the Foreign Exchange Market Is Efficient,the Forward Exchange Rate

question 36

Multiple Choice

If the foreign exchange market is efficient,the forward exchange rate would differ from the expected future spot exchange rate only by an ________.

• A) Strike price
• B) Exposure risk
• C) Future spot exchange rate
• D) Risk premium

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Definitions:

Organizational Role

The set of responsibilities, activities, and expectations associated with a specific position within an organization.

Expert Power

Power derived from having special information or expertise that is valued by an organization.

Legitimate Power

The authority to influence or control others based on a position of responsibility within an organization.

Army Officers

Army Officers are members of the military who hold positions of authority, responsible for leading soldiers, making strategic decisions, and ensuring the success of their missions.