If you were considering hiring a forecasting firm to predict future spot rates of the yen,you would hope that the firm could predict better what would be implied by the yen's forward rate.

Question

Quizplus · Accepted Answer

The forward rate of the yen reflects the market's expectation of future spot rates, so if a forecasting firm can predict spot rates more accurately than the forward rate, it would be considered more valuable to hire.

If You Were Considering Hiring a Forecasting Firm to Predict