Question: Forward Parity (essentially a variand derived from the expectations floory) states thatany forward permiam or discount is cqual to the expected change in Ace cephere

Forward Parity (essentially a variand derived from the expectations floory) states thatany forward permiam or discount is cqual to the expected change in Ace cephere rate.any forward premium or discount is equal te the actual change in the eschange rate.an increase (decrease) in the expected inflation rate in a courtry aill cane a proportionale increase (decrease) in the interves rate in the country.

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