Question: Given S0 $ = 0.6361$ and the 180-day forward rate F1 $ = 0.6352$, what is the dollar forward premium? Based on the unbiased forward
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 the spot rate of exchange in 180 days.
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