Question 9.ST.3: Assume that the forward rate and spot rate of the Mexican pe...

International Financial Management

Assume that the forward rate and spot rate of the Mexican peso are normally similar at a given point in time. Assume that the peso has depreciated consistently and substantially over the last 3 years. Would the forward rate have been biased over this period? If so, would it typically have overestimated or underestimated the future spot rate of the peso (in dollars)? Explain.

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Question: 9.ST.1

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Question: 9.ST.2

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Question: 9.ST.4

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Question: 9.ST.5

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