Suppose the one-year forward rate is pound6390 given no, Ask an Expert

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Suppose the one-year forward rate is £.6390. Given no arbitrage opportunities, this implies that traders expect the spot rate to be:

greater than £.6390 in one year.

£.6390 in one year.

less than or equal to £.6390 in one year.

less than £.6390 in one year.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92057978

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