Traders expect the spot rate

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Reference no: EM131303341

Suppose the one-year forward rate is £.6390. Given no arbitrage opportunities, this implies that traders expect the spot rate to be:

greater than £.6390 in one year.

£.6390 in one year.

less than or equal to £.6390 in one year.

less than £.6390 in one year.

Reference no: EM131303341

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