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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With U
  5. Unbiased Forward Predictor Theory

Unbiased Forward Predictor Theory

Definition of 'Unbiased Forward Predictor Theory'

The theory that the expected change in the spot rate of exchange is equal to the difference between the current spot rate and the current forward rate for the relevant period.

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Related Terms

Expectations Theory of Foreign ExchangeForeign Currency SwapForward PointsForward OptionFRAInterest Rate Parity of Exchange Rate DeterminationAPTEvolutionary Theory of the FirmTraditional Theory of Capital StructureCash and CarryContangoCurrency HedgingDiscountExchange AgioForward contractForward Exchange ContractForward MarketForward RateForward Rate of ExchangeForward-Rate Agreement

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