Are forward exchange rates good predictors of future spot rates?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Forward rates are poor predictors of future spot rates over shortter...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
Question Posted:
Students also viewed these Banking questions
-
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?
-
Some forecasters believe that foreign exchange markets for the major floating currencies are efficient and forward exchange rates are unbiased predictors of future spot exchange rates. What is meant...
-
The six-month forward :S exchange rate is S0.9976 per . A major commercial bank has made public a model that it uses to forecast future :$ spot exchange rates. This model forecasts the spot exchange...
-
The director of cost management for Odessa Company uses a statistical control chart to help management determine when to investigate variances. The critical value is 1 standard deviation. The company...
-
You are the bookkeeper at a small merchandising firm. You are comparing the income statements from the last three years. You notice that the Purchases Returns and Allowances account ( as a percentage...
-
Yuri manages 150 apartments in Irvine, California. All the apartments can be rented at a price of $1,200 per month each, but for each $100 increase in the monthly rent, there will be five additional...
-
At a blood drive, 5 donors with type O+ blood, 7 donors with type A+ blood, and 3 donors with type B+ blood are in line. In how many distinguishable ways can the donors be in line?
-
Dolphin Ceramics produces large planters to be used in urban landscaping projects. A special earth clay is used to make the planters. The standard quantity of clay used for each planter is 24 pounds....
-
Given that 57.7 fex is equal to 1 gal and that 14.3 glo is equal to 1 day, how many cL/hr are there in 0.568 fex/glo? ( NOTE: A fex and glo are are both fictitious units of volume and time,...
-
Selected information taken from the accounting records of Vigor Company follows: Net accounts receivable at December 31, 2013 .... $ 900,000 Net accounts receivable at December 31, 2014 .......
-
What is relative purchasing power parity?
-
Calculate the following cross exchange rates. a. If exchange rates are 1.2 dollars per euro and 1.5 dollars per pound, what is the euro per pound exchange rate? b. If the euro trades at 125/ and...
-
Calcium fluorapatite (Ca 10 (PO 4 ) 6 F 2 , FM 1 008.6) laser crystals were doped with chromium to improve their efficiency. It was suspected that the chromium could be in the +4 oxidation state. 1....
-
1. Figure (a) shows the Staubli 6R robot, with its zero configuration shown in Figure (b). Draw appropriate link reference frames, and derive the Denavit-Hartenberg parameters. STUBLI TX40 STUBLI (a)...
-
5) Assume that the composite in a composite beam is carbon fiber reinforced epoxy with a fiber volume fraction of 60%. To minimize the cost, assume that the carbon fibers are being replaced by an...
-
Question 2. A horizontal "hot air blower" consists of a fan, a heating coil and an exit nozzle as shown. gure 2: Blower schematic. The power of the fan is 55 W and the power to the heating coil is...
-
Water (density 1000 kg m-3) flows from one tank to another one 20 m lower. If there is no friction, at what velocity (m s-1) does the water enter the second tank? Assume gravity on your planet is 10...
-
A Pitot tube can be installed in the prow or on the side of a boat to measure its speed. If a pressure sensor with a resolution of 1000 Pa and a range from 0 to 50,000 Pa is used, and assuming a...
-
Which of AE is the proper way to write out the alternative hypothesis for the test from Exercise 8.3.1 on candy flavor distribution? A. The long-run percentages of candies are distributed 50% cherry,...
-
For what reason might an exporter use standard international trade documentation (letter of credit, draft, order bill of lading) on an intrafirm export to its parent or sister subsidiary?
-
Advanced problem on pricing strategy. Dow of the United States makes bungee cords for sale in the United Kingdom. Dow charges $6 per cord, or 4 at the $1.50/ spot rate. At this price, Dow expects...
-
Studies have found that corporations based in the United States typically have low exposures to other currencies. In contrast, studies have found that a much higher percentage of firms in other...
-
Sterling & Company is a silverware manufacturer based in the town of Sevenoaks in the United Kingdom. Although Sterling exports to companies around the world, its biggest customers are in the United...
-
make a scenario for each of the following Gesture communication Facial expression communication Oral communication Written communication discuss briefly each scenario
-
Problem 7-30 Holding Period Yield (LO2) The YTM on a bond is the interest rate you earn on your investment if interest rates don't change. If you actually sell the bond before it matures, your...
-
According to theknot.com, online dating is the most common way people meet their spouses today. This claim was based on a survey of 1,400 randomly selected recently married couples, with 266...
Study smarter with the SolutionInn App