Forecast future and forward exchange rate
It is extremely difficult in order to forecast future exchange rates more precisely as compared to forward exchange rate or to the current spot exchange rate, as per the researchers. How these findings can be interpreted?
Expert
This states that the exchange markets are information ally proficient. Therefore, until one has some private information which is not reflected in the current market rates, it might be difficult to beat the market.
You expect the price of the stock 3 years from now to be $119.04 (i.e., you expect P ˆ 3 ?? = $119.04). Discounted at a 10% rate, what is the present value of this expected future stock price? In other words, calculate the PV of $119.04.&nb
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