--%>
Assignment Help - homework help

Future spot exchange rate

Describe about the conditions under which forward exchange rate may be an unbiased predictor of the future spot exchange rate.

E

Expert

Verified

Forward exchange rate is an impartial predictor of the future spot rate in case: 

a) Risk premium is quite insignificant and 

b) Foreign exchange markets are informational proficient. 

   Related Questions in Financial Accounting

  • Q : Discuss to what extent does risk and

    to what extent does risk and term structure affects interest rates of financial instruments.

    		•
  • Q : Closing entry for financial accounting

    A journal entry that moves the effects of revenues or expenses to the owners' equity account. Only temporary account that is on the income statement is closed. The purpose of a closing entry is twofold. First, it moves revenue to retained earnings on the balance sheet

    		•
  • Q : Define the term Accounts Payable

    Accounts Payable: It is an accounting entry which symbolizes an entity's obligation to pay off a short-term debt to its creditors. Accounts payable entry is found on balance sheet beneath the heading current liabilities. Accounts payable are frequentl

    		•
  • Q : Cross-hedging and its effectiveness

    Discuss cross-hedging and also some of the factors evaluating its effectiveness.

    		•
  • Q : Business term as part of our Accounting

    "Business term is the part of our Accounting". Illustrate this statement.

    		•
  • Q : Advantage of Historical Cost in

    What is the advantage of Historical Cost in Decision Making?

    		•
  • Q : Contingent exposure and its benefits

    Describe the contingent exposure and also discuss some of the benefits of using currency options in order to maintain this type of currency exposure.

    		•
  • Q : What is Internal Communication Internal

    Internal Communication: Employee or Organizational Communication refers to the phenomenon of interaction among employees that exist in organizations. In other words, it could also be termed as Internal Communications.

    Q : What are Personal accounts What are

    What are Personal accounts. Describe their types?

    		•
  • Q : Asset-allocation funds Mutual funds

    Mutual funds that hold both bonds and stocks. Some asset-allocation funds follow specified allocation percentages and others take advantage of current condition. Those that take advantage of current condition is higher risk, because the fund manager tries to adjust the allocations to take advanta

    		•