Consider the different interest rate parity conditions studied in the chapter. Why might the exchange rate used

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Consider the different interest rate parity conditions studied in the chapter. Why might the exchange rate used in forward contracts differ from the current spot rate? Why might the forward rate differ from the future spot rate expected by investors? Explain.

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International Economics

ISBN: 9781319218508

5th Edition

Authors: Robert C. Feenstra, Alan M. Taylor

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