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Suppose the one-year forward rate is .6390. Given no arbitrage opportunities, this implies that traders expect the spot rate to be: greater than .6390 in

Suppose the one-year forward rate is .6390. Given no arbitrage opportunities, this implies that traders expect the spot rate to be:

greater than .6390 in one year.

.6390 in one year.

less than or equal to .6390 in one year.

less than .6390 in one year.

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