forecast foreign exchange rates( the relationship between interest, inflation, spot and forward rates)
- i'm not sure how we can get the expected spot rate for the future using( forward rate spot rate)
- Does it mean that if we multiply spot rate x ( forward rate / spot rate ) = expected future spot rate ??????
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forecast foreign exchange rates
8y ago#1I explain all of this in detail, with examples, in my lectures on foreign exchange risk management.
Forward rates are certainly not expected future spot rates!!
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