The currency exchange rate that is expected to be in effect in the spot market on some specified date in the future. The expected spot rate is estimated by analyzing trends in the exchange rate.
Related information about expected spot rate:
- Expected Spot Rate - Financial Dictionary - The Free Dictionary
The exchange rate between two currencies that is anticipated to prevail in the spot market on a given future date. It differs from the current spot rate primarily by ...
- Calculation for expected spot rate
The expected spot rate can be estimated by observing the relevant forward rate. E.g. expected spot rate in 90-days can be estimated by observing the 90-day ...
- What is expected spot rate? definition and meaning
Definition of expected spot rate: The currency exchange rate that is expected to be in effect in the spot market on some specified date in the future. The expected ...
- Lecture 7: Interest Rate Parity - Wellesley
should be close to the expected spot rate in the future. • To make things more concrete in how the spot rate, the forward rate and the expected future rate are ...
- The Term Structure of Interest Rates, Spot Rates, and Yield to Maturity
12.04% Spot rate expected over year 2. (A.13). In other words, if the forward rate equals the expected spot rate, one would expect to earn the same return over ...
- SUGGESTED SOLUTIONS TO CHAPTER 7 PROBLEMS
If the current spot rate is £1 = SF 12.50, what is the expected spot rate in two years? Answer. Based on PPP, the expected value of the pound in two years is 12.5 ...
- The Relationship Between Forward and Spot Exchange Rates
Topic 3: The Relationship Between Forward and Spot Exchange Rates. To this point we have analyzed the reasons why spot and forward foreign exchange ...
- Exchange Rate Expectations and the Risk Premium: Tests for a ...
where A§Z,+k E sg,+k -— s,, and s'f,,+k is the expected spot rate at time t + k, based on the survey measures taken at time t. The null hypothesis thatthe slope ...