Question: 4.4- Given S 0 /$ = 0.6361/$ and the 180-day forward rate F 1 /$ =0.6352/$, what is the dollar forward premium? Based on the
4.4- Given S0/$ = 0.6361/$ and the 180-day forward rate F1/$=0.6352/$, what is the dollar forward premium? Based on the unbiased forward expectations hypothesis, by how much is the dollar expected to appreciate or depreciate over the next 180 days? Provide a forecast of spot rate of exchange in 180 days.
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