(a) What is the difference between the expected change in the exchange rate and the forward discount...

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(a) What is the difference between the expected change in the exchange rate and the forward discount or forward premium on the foreign currency?
(b) When would the expected change in the exchange rate equal the forward discount or forward premium on the foreign currency? Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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International Economics

ISBN: 978-1119915737

11th edition

Authors: Dominick Salvatore

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