Which of the following appears to be a safe assumption when there is no difffference between the forward and spot exchan

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answerhappygod
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Which of the following appears to be a safe assumption when there is no difffference between the forward and spot exchan

Post by answerhappygod »

Which of the following appears to be a safe assumption
when there is
no difffference between the forward and spot exchange
rate between two
currencies?
A. The countries have equal nominal interest
rates.
B. The spot exchange rate is expected to
change.
C. Expected inflflation is less than the nominal
interest rate.
D. Both currencies are selling at a premium relative to
the other.
E. None of the above.
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