If exchange markets were efficient, the deviation of the actual future quote and today's forward rate will be zero.

Name: If exchange markets were efficient, the deviation of the actual future quote and today's forward rate will be zero.
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Quizplus · Accepted Answer

In efficient markets, prices reflect all available information, but this does not guarantee that today's forward rates will exactly predict future spot rates due to unforeseen events and information not available at the time the forward rate is set.

If Exchange Markets Were Efficient, the Deviation of the Actual