In Theory,the Foreign Exchange Futures Price Is Based on Four

question 55

True/False

In theory,the foreign exchange futures price is based on four parameters only,the spot foreign exchange rate,the risk-free rate in the domestic currency,the risk-free rate in the foreign currency,and time to maturity.

---

Definitions:

Self-Supporting

An entity or individual that is capable of providing for its needs without external assistance.

Welfare Programs

Governmental programs designed to support individuals and families in need by providing financial aid, healthcare, and social services.

Federal Government

The national government of a federal state, which shares sovereignty with the states or provinces.

Welfare Reform

Changes to the national or local welfare system, often aimed at reducing dependency on government aid and encouraging employment among those able to work.