if interest rate parity holds, then the one-year foward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect.  a. greater than  b. less than  c. equal to  d. answer is dependent on whether the foward rate has discount or premium.

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
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ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 6E
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if interest rate parity holds, then the one-year foward rate of a currency will ______ the predicted spot rate of the currency in one year according to the international Fisher effect. 

a. greater than 

b. less than 

c. equal to 

d. answer is dependent on whether the foward rate has discount or premium. 

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