Question: 4 It is sometimes argued that a forward exchange rate is an unbiased predictor of future exchange rates. Under what circumstances is this so ?

4 It is sometimes argued that a forward exchange rate is an unbiased predictor of future exchange rates. Under what circumstances is this so

4 It is sometimes argued that a forward exchange rate is an

?Provide proof and please be specific about required conditions (assumptions) on relation(s) between financial variable(s) such as

unbiased predictor of future exchange rates. Under what circumstances is this so

of both countries. (3 Points)

Facts & Formulas:______________________________________________________________

Calculations:___________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

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