When the forward rate is equal to the expected future spot rate, the forward rate is said to be __________ the future spot rate. Group of answer choices a an information signal for b. an unbiased predictor of c. a hedge for d. in parity with the expected future spot rate

When the forward rate is equal to the expected future spot rate, the forward rate is said to be __________ the future spot rate. Group of answer choices a an information signal for b. an unbiased predictor of c. a hedge for d. in parity with the expected future spot rate

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter11: Risk-adjusted Expected Rates Of Return And The Dividends Valuation Approach

Section: Chapter Questions

Problem 4QE

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Question

When the forward rate is equal to the expected future spot rate, the forward rate is said to be __________ the future spot rate.

Group of answer choices

a an information signal for

b. an unbiased predictor of

c. a hedge for

d. in parity with the expected future spot rate

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