FORWARD PARITY - Notion that the forward rate is an unbiased predictor of future spot exchange rates. FORWARD PREMIUM - A currency trades at a forward premium when its forward price is higher than its spot...
See Forward parity. Unbiased predictor A theory that spot prices at some future date will be equal to today's forward rates. Unbundling Separation of a multinational firm's transfers of funds into discrete flows for specific purposes.
Unbiased expectations hypothesis Theory that forward exchange rates are unbiased predictors of future spot rates. See Forward parity. Unbiased predictor A theory that spot prices at some future date will be equal to today's forward rates.
A market in which participants agree to trade some commodity, security, or foreign exchange at a fixed price for future delivery. Forward parity ...
See also: Forward rate, Unbiased predictor, Current income, Expected return, Foreign market
 
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