Question: Short-answer question #3 (8 marks) List and explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot

 Short-answer question #3 (8 marks) List and explain the conditions under

Short-answer question #3 (8 marks) List and explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. What is the relationship between forward rates and interest rates? Write your answer in the box below

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