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5 points) If the forward rate is an unbiased predictor of future spot rates (i.e., forward...

5 points) If the forward rate is an unbiased predictor of future spot rates (i.e., forward market efficiency holds), then the future spot rate will always be equal to the current forward rate. a. true b. false

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If forward market is efficient and thus is unbiased predictor of future spot rates, then future spot rate will always be equal to the current forward rate

Therefore above statement is true.

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