What does it mean for forward rates to be unbiased forecasters of future spot exchange rates? What

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What does it mean for forward rates to be unbiased forecasters of future spot exchange rates? What are the implications in risk management situations?

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International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets

ISBN: 9781119550464

2nd Edition

Authors: Laurent L. Jacque

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Question Posted: Mar 09, 2024 01:02 AM

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It is often argued that forward exchange rates should be unbiased predictors of future spot exchange rates if the foreign exchange market is efficient. Is this true or false? Why?
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What does it mean for forward rates to be unbiased forecasters of future spot exchange rates? What

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International Corporate Finance Value Creation With Currency Derivatives In Global Capital Markets

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