Assume that the forward rate and spot rate of the Mexican peso are normally similar at a
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Assume that the forward rate and spot rate of the Mexican peso are normally similar at a given point in time. Assume that the peso has depreciated consistently and substantially over the last 3 years. Would the forward rate have been biased over this period? If so, would it typically have overestimated or underestimated the future spot rate of the peso (in dollars)? Explain.
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