If someone you were working with argued that the current forward rate quoted on a currency pair

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If someone you were working with argued that the current forward rate quoted on a currency pair is the market's expectation of where the future spot rate will end up, what would you say?

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Multinational Business Finance

ISBN: 978-0133879872

14th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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Question Posted: Jan 19, 2017 09:51 AM

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If someone you were working with argued that the current forward rate quoted on a currency pair

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This is a common misconception The forward rate is a calcu...View the full answer

Multinational Business Finance

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