Are forward exchange rates good predictors of future spot rates?
Question:
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 57% (14 reviews)
Forward rates are poor predictors of future spot rates over shortter...View the full answer
Answered By
Somshukla Chakraborty
I have a teaching experience of more than 4 years by now in diverse subjects like History,Geography,Political Science,Sociology,Business Enterprise,Economics,Environmental Management etc.I teach students from classes 9-12 and undergraduate students.I boards I handle are IB,IGCSE, state boards,ICSE, CBSE.I am passionate about teaching.Full satisfaction of the students is my main goal.
I have completed my graduation and master's in history from Jadavpur University Kolkata,India in 2012 and I have completed my B.Ed from the same University in 2013. I have taught in a reputed school of Kolkata (subjects-History,Geography,Civics,Political Science) from 2014-2016.I worked as a guest lecturer of history in a college of Kolkata for 2 years teaching students of 1st ,2nd and 3rd year. I taught Ancient and Modern Indian history there.I have taught in another school in Mohali,Punjab teaching students from classes 9-12.Presently I am working as an online tutor with concept tutors,Bangalore,India(Carve Niche Pvt.Ltd.) for the last 1year and also have been appointed as an online history tutor by Course Hero(California,U.S) and Vidyalai.com(Chennai,India).
4.00+
2+ Reviews
10+ Question Solved
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
Question Posted:
Students also viewed these Banking questions
-
It is often argued that forward exchange rates should be unbiased predictors of future spot exchange rates if the foreign exchange market is efficient. Is this true or false? Why?
-
Some forecasters believe that foreign exchange markets for the major floating currencies are efficient and forward exchange rates are unbiased predictors of future spot exchange rates. What is meant...
-
The six-month forward :S exchange rate is S0.9976 per . A major commercial bank has made public a model that it uses to forecast future :$ spot exchange rates. This model forecasts the spot exchange...
-
The director of cost management for Odessa Company uses a statistical control chart to help management determine when to investigate variances. The critical value is 1 standard deviation. The company...
-
You are the bookkeeper at a small merchandising firm. You are comparing the income statements from the last three years. You notice that the Purchases Returns and Allowances account ( as a percentage...
-
Develop a list of seven key criteria that a nonprofit charitable organization should consider in selecting a CRM system. Discuss each criterion and assign a weight representing the relative...
-
What do you recommend that Hoi do to improve the companys cash flow? LO.1
-
Determining and interpreting fixed cost variances Sloan Company established a predetermined fixed overhead cost rate of $29 per unit of product. The company planned to make 7,000 units of product but...
-
Analyse how, in responding to financial problems, management accounting can lead organisations to sustainable success.
-
Calculate and graph L 0 , L 1 , L 2 , L 3 with x 0 = 0, x 1 = 1, x 2 = 2, x 3 = 3 on common axes. Find p 3 (x) for the data (0, 1), (1, 0.765198), (2, 0.223891), (3, -0.260052) [values of the Bessel...
-
What is relative purchasing power parity?
-
Calculate the following cross exchange rates. a. If exchange rates are 1.2 dollars per euro and 1.5 dollars per pound, what is the euro per pound exchange rate? b. If the euro trades at 125/ and...
-
On June 30, 2016, MetroMedia Unlimited purchased 10,000 shares of Mitekii for $20 per share. The following information pertains to the price per share of Mitekii shares: Price...
-
Convex Productions produces full-length motion pictures for distribution worldwide. Convex has just purchased the rights to a movie script entitled Native Sun, which it intends to develop as its next...
-
You are visiting the Engineering Office of Denton Hospital, as part of a consulting project. You notice some charts on one wall which look familiar to you: One of the employees notices you reading...
-
Richmond Clinic has obtained the following estimates for its costs of debt and equity at different capital structures: What is the firms optimal capital structure? (Hint: Calculate its corporate cost...
-
Suppose a sample yields estimates \(\widehat{\theta}_{1}=5, \widehat{\theta}_{2}=3\), se \(\left[\widehat{\theta}_{1} ight]=2\), and se \(\left[\widehat{\theta}_{2} ight]=1\) and the correlation...
-
Helium expands in a nozzle from \(0.8 \mathrm{MPa}, 500 \mathrm{~K}\), and negligible velocity to \(0.1 \mathrm{MPa}\). Calculate the throat and exit areas for a mass flow rate of \(0.34 \mathrm{~kg}...
-
Have you ever participated in some type of organizational development effort? If so, what was done? How did you feel about the program? Do you believe the effort was effective?
-
Willingness to pay as a measure of a person's value for a particular good measures the maximum a person would be willing to pay requires that payment actually be made depends on the satisfaction that...
-
Advanced problem on pricing strategy. Dow of the United States makes bungee cords for sale in the United Kingdom. Dow charges $6 per cord, or 4 at the $1.50/ spot rate. At this price, Dow expects...
-
Studies have found that corporations based in the United States typically have low exposures to other currencies. In contrast, studies have found that a much higher percentage of firms in other...
-
Sterling & Company is a silverware manufacturer based in the town of Sevenoaks in the United Kingdom. Although Sterling exports to companies around the world, its biggest customers are in the United...
-
Given the following financial data for the Smith Corporation, calculate the length of the firm's operating cycle (OC). Sales $2,610,000 Cost of Good Sold $2,088,000 Inventory $ 278,400 Accounts...
-
The predetermined overhead rate is usually calculated Group of answer choices At the end of each year At the beginning of each month At the beginning of the year At the end of the month
-
ajax county collects property taxes for the cities within the county, Ajax county collected 1000 from citizens in Beatty city that belong to Beatty city what would be the appropriate entries for ajax...
Study smarter with the SolutionInn App