In accordance with the unbiased forward rate condition in determining the exchange rate, the current forward rate can be used as a ____________.

Multiple Choice

• condition where the spot rate is expected to remain constant over a period of time.

• condition where a future spot rate is equal to the current spot rate.

• predictor of the future spot rate at the equivalent point in time.

• relationship between the future spot rates of two currencies at an equivalent point in time.

• guarantee of a future spot rate at one point in time.