
The unbiased forward rate condition supports the idea that the current forward rate is a:
A) condition where a future spot rate is equal to the current spot rate.
B) guarantee of a future spot rate at one point in time.
C) condition where the spot rate is expected to remain constant over a period of time.
D) relationship between the future spot rates of two currencies at an equivalent point in time.
E) predictor of the future spot rate at the equivalent point in time.
Correct Answer:
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