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

Here is the answer for the question – When the forward rate is equal to the expected future spot rate, the forward rate is said to be ________ the future spot rate.. You’ll find the correct answer below

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

The Correct Answer is

b. an unbiased predictor of

Reason Explained

b. an unbiased predictor of is correct for When the forward rate is equal to the expected future spot rate, the forward rate is said to be ________ the future spot rate.

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