Multiple Choice
When the forward rate is equal to the expected future spot rate,the forward rate is said to be ________ the future spot rate.
A) an information signal for
B) an unbiased predictor of
C) a hedge for
D) in parity with the expected future spot rate
Correct Answer:

Verified
Correct Answer:
Verified
Related Questions
Q22: If there is no systematic difference between
Q23: To determine the risk premium associated with
Q24: Multinational corporations most often hedge their transaction
Q25: Why is it true that the hypothesis
Q26: What is the main determinant of the
Q27: If interest rate parity prevails,what is the
Q28: The _ holds that it is the
Q29: When the forward rate equals the expected
Q30: Modern portfolio theory developed by William F.Sharpe
Q32: Describe how you construct the uncertain