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VIBA 9) If the forward rate is used as an indicator of the future spot rate, the spot rate is expected to appreciate or depreciate
VIBA 9) If the forward rate is used as an indicator of the future spot rate, the spot rate is expected to appreciate or depreciate by the same amount as the forward premium or discount, respectively. a. True b. False 10) Two methods for assessing exchange rate volatility are to use the volatility of historical exchange rate movements and to derive the exchange rate's implied standard deviation from the currency option pricing model. a. True b. False
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