Which following statement is Incorrect? A forward exchange agreement between currencies states the rate of exchange at which a foreign currency will be bought forward or sold forward at a specific date in the future. The spot and forward exchange rates are constantly in the state of equilibrium described by interest rate parity. The degree to which the prices of imported and exported goods change as a result of exchange rate changes is termed pass-through. If the identical product or service can be sold in two different markets; and no restrictions exist on the sale; and transportation costs of moving the product between markets are equal, then the products price should be the same in both markets. This is called the law of one price