Question: a . What is the relationship between the 1 year forward rate and the expected spot rate one year from now? What enforces this relationship?

a. What is the relationship between the 1 year forward rate and the expected spot rate one year from now? What enforces this relationship? (10 points)
b. Would banning the short selling of currencies make exchange rates reach their equilibrium value faster or slower? Why? (10 points)
a . What is the relationship between the 1 year

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