Multiple Choice
Which of the following is not a method of forecasting exchange rate volatility?
A) using the absolute forecast error as a percentage of the realized value.
B) using the volatility of historical exchange rate movements as a forecast for the future.
C) using a time series of volatility patterns in previous periods.
D) deriving the exchange rate's implied standard deviation from the currency option pricing model.
Correct Answer:
Verified
Correct Answer:
Verified
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