Multiple Choice
The forward expectations parity states that:
A) any forward premium or discount is equal to the expected change in the exchange rate.
B) any forward rate is equal to the expected change in the exchange rate.
C) the forward premium or discount is equal to the expected change in the real exchange rates.
D) the forward premium or discount is equal to the expected change in purchasing power parity.
Correct Answer:
Verified
Correct Answer:
Verified
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