1. If the forward rate is an unbiased predictor of the future spot rate, then at the time of the purchase of a foreign exchange put option the expected payoff from holding the option to maturity is the forward rate minus the strike price of the option. false??

1 out of 1 points Question 7 Given the following information (assume no uncertainty, and we are in equilibrium): Australian inflation: 1.51% p.a. Swiss inflation: 0.65% p.a. Australian real interest rates: 2% p.a. What is the current one-year nominal interest rate in Switzerland? Selected Answer: 2.66 Correct Answer: 2.66% Question 8 O out of 1 points Given the following: U.K. Inflation: 2018: 2.3% --- 2019: 1.7% --- 2020: 1.0% Australian Inflation: 2018: 1.9% --- 2019: 1.6% --- 2020: 0.8% AUD/GBP: 0.5767 (Jan 1 2018) --- 0.5675 (Jan 1 2021) During the three-year period above, the real change in the value of the AUD in terms of GBP was? Selected Answer: None of the other options are correct Correct Answer: 2.27% depreciation