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The forward foreign exchange rate A. Determines the future spot exchange rate. B. Is unaffected by changes in interest rates. C. Is the ratio of
The forward foreign exchange rate
A. Determines the future spot exchange rate.
B. Is unaffected by changes in interest rates.
C. Is the ratio of equivalent spot amounts in each currency compounded to the forward maturity at the respective currencies' spot rates.
D. Is the rate that ensures that future expected purchasing power will be in parity.
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