Two Methods to Assess Exchange Rate Volatility Are the Volatility

question 33

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:

Breach of Contract

The violation of any terms or conditions in a contract without a lawful excuse.

Spelling Mistake

An error in the arrangement of letters within a word, leading to incorrect spelling and sometimes misunderstanding.

Illegality of Object

The principle that a contract is void if it involves actions or outcomes that are illegal or against public policy.

Cocaine

Cocaine is a powerful stimulant drug derived from the leaves of the coca plant, often used recreationally for its euphoric effects but illegal in many jurisdictions.