Multiple Choice
The replication method identifies the price of a USD/GBP forward rate as a function of
A) The expected future USD/GBP exchange rate, the GBP interest rates, and the USD interest rates
B) The spot USD/GBP exchange rate and the volatility of the spot USD/GBP exchange rate
C) The spot USD/GBP exchange rate, the GBP interest rates, and the USD interest rates
D) Only the spot USD/GBP exchange rate
Correct Answer:
Verified
Correct Answer:
Verified
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